Cataler
Sustainability
Report 2023

Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

Table of contents■ Top message■ Introduction of
CATALER products■ CATALER's
Sustainability

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 02

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 03

ESG data

Policy type

Editorial policy■ Governance・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・33(Editorial policy)
This report describes the various policies and systems related to

Corporate governance・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・34

Compliance・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・35

Risk management

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・38

sustainability activities and the results of activities for "contribute to asustainable society" and "future direction" through our businessactivities of development, manufacturing, and sales of exhaust gas
puriﬁcation catalysts for automobiles and motorcycles, which we havebeen engaged in since the foundation of CATALER.

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 04

■ ESG data

In addition, starting with the 2020 edition, the name of the report has
・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・43

been changed from "CSR Report" to "Sustainability Report" to further
enhance the information that is relevant to the interests of our■ Environment

stakeholders.
・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 07

Environmental management

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 08

Environmental load andresource saving

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 11

Climate change・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 12

Conservation of water
resources

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 13

■ Policy type

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・45(Target period)
FY2022 (April 2022 - March 2023)*Some contents before and after the relevant period are also included.

(Target range)
This report covers CATALER Co., Ltd.
*Some information includes overseas subsidiaries.

(Issuance date)
December 2023 (previous issuance: December 2022)/next■ Society・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 14

Quality assurance

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 15

Supply chains・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 18

Respect for human rights

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 20

Human resources

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 21

Occupational safety andhealth・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 26

Health・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 28

Social contribution
activities

・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ ・ 31

scheduled issuance: November 2024
▶The reporting cycle will be once a year.

(Reference guidelines)
GRI Standard(Inquiries)
Department responsible for issuing: General Aﬀairs Division
7800 Chihama, Kakegawa City, Shizuoka Prefecture 437-1492
E-mail:report-suport@cataler.co.jp

Cataler Sustainability Report 2023

01

Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy typeTop message[Responses that anticipate changes]
In recent years, the speed of change has accelerated in various ﬁelds. With raised political tensions,[To realize a society that leaves no one behind]
CATALER complies with the culture, customs, history and laws of each country, and respects therecord inﬂation, and coexistence with the coronavirus that has wreaked havoc around the world forhuman rights of all people involved in its business activities. We have created an environment in which

several years, we are entering an era of uncertainty. The automotive industry is also in the midst of aemployees can work energetically, regardless of their nationality, gender, or whether they have aonce-in-a-century revolution, with rapid progress in technological innovation in the CASE domain. We

disability. Diversity and inclusion are essential to the growth of the company, and we will strive toare sensitive to such changes in society and industry, and aim to contribute to society throughdevelop our workplaces and systems where each and every employee can shine, and to foster abusiness development that anticipates environmental changes.

climate that respects individual human rights.

The CATALER Group announced its management vision "GLOBAL VISION 2025" in 2016, and isdeveloping activities to realize its vision and goals for the next 10 years.
During this period, we have proceeded according to plan, achieving our management targets early,
winning the Deming Grand Prize, and receiving the Deming Prize at our overseas bases, etc. In addition,
the nature of business itself is changing due to the growth of carbon neutrality and the DX ﬁeld, so wehave added them as new themes.

To solve social issues and achieve sustainable growth, CATALER will continue to engage in dialogue
with all stakeholders, including customers, local communities, and employees to become a company
that is trusted and loved by them.
President and CEO

Masashi Ishida

Under the slogan of “Dynamic progress, Breakthroughs, Great strides” , we will continue toanticipate social changes, enhance the management foundation, and develop proactive actions inorder to solidify our sustainable growth. We will realize our idea of sustainability, which is to live inharmony with all of you.

[Realization of a sustainable society through business activities]
Since our founding in 1967, the CATALER Group has been committed to the management philosophyof "contributing to the creation of a prosperous society through the provision of advanced
technologies and products that aim for better harmony between people and the environment." Since
then, we have developed environmental technologies that purify air and water focused on automotive
exhaust gas puriﬁcation catalysts, and have worked to solve environmental problems on a global
scale.
We recognize that this management philosophy is linked to the SDGs, which aim to realize asustainable society. We are working to achieve our goal by 2030 in order to contribute to the
puriﬁcation of the atmosphere and reduction of environmental burdens through our business activities.
We will also contribute to climate change issues by setting goals for carbon neutrality by utilizing ourcatalyst technology and knowledge of carbon materials we have cultivated over the years.

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

CATALER's
Sustainability

Introduction of
CATALER products

Environment

Society

Governance

ESG data

Policy type

Introduction of CATALER products
Live together on this earth

Electrocatalyst for fuel cells

It converts harmful substances into harmless components through chemical reactions. That is the power ofA hydrogen fuel cell vehicle generates electric energy through a reaction between oxygen taken from the"catalyst".

atmosphere and hydrogen installed in the vehicle to drive the motor. We are making "electrocatalysts for fuel

CATALER manufactures and sells "catalysts" that detoxify harmful substances from automobiles and motorcycles

cells" that will be the power to generate electricity.

before they are emitted.

FC stack

It boasts the top market share in Japan, is highly rated by overseas automobile manufacturers, and is widely

Cellused around the world.
CATALER aims for a sustainable society and contributes to reducing the number of illnesses caused by air
pollution through its business as a company that lives together with its stakeholders on this planet.

Catalysts for exhaust gas puriﬁcation
1

Oxygen electrode(catalyst layer)

The catalyst layer consists of platinum-loaded carbon.
By equalizing the size and arrangement of platinum using

Hydrogen electrode(catalyst layer)

our technology, we are able to eﬃciently cause chemical

Catalysts for gasoline vehicles

reactions and improve power generation performance.

Hazardous substances (hydrocarbons, carbon monoxide, nitrogenoxides) in exhaust gas are converted into nitrogen, water, and carbon

Drive battery

Motordioxide through oxidation/reduction reactions by catalysts coated in
the cells of ceramic or metal honeycomb structures. It is emitted as a
Oxygenharmless component.
2

(air)

Catalysts for diesel vehicles

OxygenHydrogenFC stack

By coating a catalyst to the ﬁlter-like base material, par-Drain water out of the car

ticulate matter (such as soot) unique to diesel vehicles
Catalysts forgasoline vehicles

is removed along with hydrocarbons and carbon monoxide when the exhaust gas passes through the walls of
the ﬁlter.

3

Motorcycle catalysts

Catalysts for diesel
vehicles4

Catalysts for marine engines

5

Catalysts for general-purpose engines

It detoxiﬁes harmful substances con-

Metal honeycomb catalysts are

It is also used to purify the exhaust

tained in the exhaust gas of motorcycles

installed not only on motorcycles but

gas of products with internal combus-

using a metal honeycomb substrate inalso in PWCs (marine engines) such astion engines for gardening equipment,

which a honeycomb structure made by

motorboats and personal watercraft

such as mowers, chain saws and trim-

lap-wound corrugated metal foil and ﬂatthat are used on water. It's compliant

mers that use small engines, and golf

foil is assembled to a metal pipe.

with US emissions regulations.

carts.

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

CATALER GROUP Management Philosophy
The Management Philosophy is the core of the Group's management, as it expresses the Group's
signiﬁcance of existence and mission.
We will continue to provide new value to all stakeholders and aim to realize a sustainable society.

Management Philosophy

Society

Governance

ESG data

Policy type

CATALER's Sustainability
Under our management philosophy, we respond to the changes in the business environment within which thecompany operates by undertaking our corporate activities with the aim of realizing sustainable success throughthe creation of new value.
To this end, we carry out our business activities on the basis of respect for human rights, high ethical

CATALER's management philosophy is based on the pillars of contributing to society as well as adheringto corporate ethics.

standards and social conscience, and we provide products and services that help to address a wide range ofsocial and global issues.
As a result, by contributing toward the achievement of the United Nations Sustainable Development Goals

1. Comply with domestic and foreign laws and their spirit, and engage in open and fair corporate activities.

(SDGs) while also striving for sustainable development ourselves, we aim to enhance our corporate value as a

2. Contribute to customer satisfaction and the creation of a prosperous society by providing advanced

truly global company.

technologies and products for greater harmony between people and the environment
3. Create a corporate culture based on mutual trust between labor and management, where employees areable to maximize their abilities, and challenge new possibilities on a daily basis
4. Be a company that contributes to the development of the community and is loved and trusted by local
peopleSustainability Policy
CATALER believes that the putting into practice of our management philosophy will lead to signiﬁcantsustainability results, and will contribute toward the realization of a sustainable society. Therefore, we haveestablished the CATALER Group Sustainability Policy, which speciﬁes the company's stance in relation to eachstakeholder, based on our management philosophy, with the aim of helping to address various social issues
and promote sustainable development.
▶Click here for the Sustainability Policy

Management
Philosophy
Sustainability
PolicyA statement of "the company's stancetoward each stakeholder" based on
the management philosophy

Guidelines for action

Promotion structure
The SDGs Organizer of the General Aﬀairs Division serves as the lead organization, promoting activities incooperation with all relevant departments..
Progress on the priority issues and targets approved by the CSR Committee is regularly checked andreported to management as appropriate.

CATALER Group priorities (Materiality)

Embodying the Sustainability

CATALER has evolved its existing CSR activities and developed various activities in line with the ideas of the

Guidelines as a code of conduct for

SDGs to contribute to stakeholders and society. From 2020, the CATALER Group has set three priority issues to

employees

focus on and targets to achieve by 2030, and has been working on them. We will continue to review the planas necessary and promote initiatives through the PDCA cycle.

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Decrease in the number of illnesses
due to air pollution

Priority issue identiﬁcation process

Priorities (Materiality) and Goals to 2030
(Materiality)

companies, and using the SDG Compass as a reference.
Step 2Extracting the issue

Based on the 17 goals and 169 targets of the SDGs, we identiﬁed initiatives with high priority on the two axes of

1(1) their strong relevance to our business and (2) the magnitude of their impact on society. (See ﬁgure below).
Step 3What we aim forthe number of illnesses
caused by air pollution
automotive emission
catalysts, our main

Mat er i al i t y (SD Gs ap p l i cab l e t ar g ets)
GOOD HEALTH
AND WELL-BEING[Goal 3]

Reducing environmental impact
in the value chain

2

Actualresults for
FY2022

Total amountof puriﬁcationof CO, HC,
and NOX

56 million
tons

99.29 million
tons

Approx. 600
million tons

CO₂emissionsat plants

53,831 tons

45,045 tons

61% reduction
from 2013 actual

Amount ofwaste
generated

Below actual
emission
intensity in
2018

Below actual
emission
intensity in
2018

Below actual
emission intensity in 2018

Precious
metal usage(Pt、Pd、Rh)

Reduction of
more than 30%
per vehicle
compared to2015

Reduction of
more than 30%
per vehicle
compared to2015

Reduction of morethan 60% pervehicle compared
to 2015(Domestic sites)
Maintain 80% orless of the legal
regulation value

In principle, lessthan 80% of thelegal regulationvalue

In principle, lessthan 80% of thelegal regulation
value

Employment
rate of persons
with disabilities

2.56%

2.3% or more (inaccordance withthe required
employment
rate)

RESPONSIBLE
CONSUMPTION
AND PRODUCTION

Minimize the impact on
the global environment

Employment
rate of women
hired as new
graduates

22.5%

More than
20% annuallyMore than 20%
annually

Number of
femalemanagers

1.5 times thatof 2020

2 times thatof 2020

5 times that of2020

caused by manufacturing selling products.
CLEAN WATER
AND SANITATION

Water quality[Goal 6]

Im pa ct o n society

CLEAN WATER AND SANITATIONDECENT WORK AND
ECONOMIC GROWTH[Goal 8]DECENT WORK AND ECONOMIC GROWTHRESPONSIBLE
CONSUMPTION
AND PRODUCTION

CLIMATEACTIONStr e n g th of r e le v a n c e t o C AT AL E R' s b u s i ness

[Goal 12]RESPONSIBLE CONSUMPTION AND PRODUCTION

3

Promoting Diversity

GOOD HEALTH AND WELL-BEING
CLEAN WATER
AND SANITATION

Targets for
FY2023

Target value
by 2030

Scope ofcoverage

product line.
CLIMATEACTIONManagement approval

Approval of items set as priorities for our company at internal meetings attended by management.

GOOD HEALTH
AND WELL-BEING

by expanding sales ofConﬁrmation of appropriateness

Discussions were held to identify the company's priorities.

Control item

Contribute to reducing

Management and the SDGｓ organizer conﬁrmed the appropriateness of the priority issues and targets.

Step 4Goal

To be an attractive
company where diverse
human resources canwork vigorously inaccordance with their

DECENT WORK AND
ECONOMIC GROWTH

Whole Group

Priorities

Understand the process of setting priorities and goals by attending seminars on SDGs, benchmarking other

2.3% or more(in accordance withthe required
employment rate)

own work-life balance.

Head oﬃce

Information gathering

Decrease in thenumber ofillnesses
due to air pollution

Step 1[Goal 13]
CLIMATE ACTION

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Introduction of
CATALER products

Top message

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Local and Global Society

Stakeholder Engagement

Communication methods Frequency

In recent years, the scope and magnitude of the inﬂuence that corporate activities have on society, and that

Invitations to our events / Participation in community events

society has on companies, has expanded.

As needed→Interaction with local residents

For sustainable development, CATALER strives to maintain and develop sound relationships with allPartnerships and collaborative activities with NGOs, NPOs,
and community organizations

stakeholders, including customers, shareholders, employees, local communities, and business partners such as
suppliers, through open and fair communication based on our management philosophy.

As needed→Social contribution and volunteer activities in various regions of the world

Speciﬁcally, the relevant departments within the company serve as points of contact for major stakeholders
to engage in dialogue, and we promote initiatives that will lead to solutions to social issues through our coreReﬂection on corporate activities

business by sincerely addressing the expectations and challenges of society. Under our management
philosophy, we will continue to strive to be a sincere company that is trusted by our stakeholders.

Contribution to sustainable development oflocal communities, as well as recognizing
and solving social issues

Customer

EmployeeCommunication methods Frequency
Customer Service Contact

Communication methods

As needed

Employee attitude survey→Respond to comments by phone or email form

Customer satisfaction survey

workplace culture, company life, etc.

Labor-Management full-year
consultative working group→Strengthening mutual trust and understanding further
expectations and requests

Providing information through the company intranet
and internal newsletters
As needed

Communication methods

Frequency

Organize various meetings with suppliers, workshops, and events.

As needed→Sharing procurement policies, mutual study, and strengthening partnerships

Reﬂection on corporate activities→Disseminating and sharing company information

Improvement of CS activities

ClientBuilding a close relationship for coexistence andco-prosperity based on mutual trust

24 times/year→Discussions and negotiations on issues between
labor and management, exchange of opinions and mutual understanding

As needed→Dissemination of company information and business activities

Reﬂection on corporate activities

Once/year→Surveys and opportunities for improvement regarding

As needed

Provide information through corporatewebsite and various SNS / reports

Frequency

Strengthen relationships between laborand management based on mutual trust,and reform and improve workplace culturereld

Reﬂection on corporate activities

Sh

o
h
e
ar

Shareholder

Communication methods

Frequency

General meeting of shareholders

June→Business report, Consolidated ﬁnancial statements, Report on audit results, etc.,
and discussion and resolution on settlement of accounts

Reﬂection on corporate activities

Improvement of management
quality to enhance corporate value

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy typeEnvironment
Environmental management

08

Environmental load and resource saving

11

Climate change

12Conservation of water resources

13

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy typeEnvironmental managementbusiness activities, in order to protect the irreplaceable earth and its rich society forever, based on the theme of“the best way for people and the environment” .
CATALER's environmental guidelines are as follows.

Contribution to a prosperous 21st century
To contribute to a prosperous 21st century society, we will develop and provide advanced environmental products.
Moreover, we will actively promote the continuation and maintenance of zero emissions through our corporate activities,
the more eﬃcient use of electricity and natural gas, and the reduction of our environmental impact through the eﬀective useof raw materials.

Pursuit of environmental technology
With the theme of coexistence between the environment and the economy, we will pursue all possibilities in both productdevelopment and production activities, and work to discover and establish new technologies.

Voluntary initiatives
In order to prevent environmental pollution and contribute to environmental protection, we set voluntary environmental
targets based on our environmental guidelines, focusing on the ﬁelds of environmental conservation, energy conservation,eﬀective use of resources, and design and procurement. We plan activities with the participation of all employees, andpromote thorough prevention and continuous improvement.
Evaluate these activities by a management review chaired by the President, and review them to achieve the goals.

Collaboration and cooperation with society
In addition to complying with all environmental laws and regulations, other laws and regulations, ordinances, agreements,
and agreements with our customers, we will promote cooperation with aﬃliated companies and related industries, as well as
collaboration and cooperative relationships with a wide range of people in society related to the environment.

Implementation of environmental education
In order to carry out these activities more eﬀectively and achieve results, we will clarify and systematically implement thenecessary education for all people who work for us.

We have established a system with the president as top
management, and all employees participate inenvironmental activities under the leadership of theenvironmental manager and the environmental organizer. In
addition, when legal managers, such as pollution control
managers, are required, qualiﬁed personnel are assigned
to the job.
At the Safety and Environment Meeting, the organizer
reports on the status of legal compliance, revisions tolaws, environmental concerns and countermeasures,cooperation with other companies, etc., and eachsubcommittee reports on its activities and we lead them tothe next action. The subcommittees on the environment
are divided into four areas; Environmental Conservation,
Energy Conservation, Eﬀective Resource Utilization, andDesign and Procurement.

President
Safety and Environment Meeting(Management deliberations)
Environmental management Supervisor

P oll u tion C on tr ol Sup er vis or
Environmental Organizer (Safety and Environment Division)

Environmental Preservation Subcommittee
Ha z ar d Pr e v en tion M ana g er
Energy Conservation Subcommittee
Energ y Management Supervisor
Eﬀective Use of Resources Subcommittee
Specially Controlled Industrial Waste Supervisor

department

CATALER considers consideration for the global environment to be one of the most important issues in its

Management system

Each

Environmental guidelines

Design Procurement Subcommittee

From the Environmental
Management
Each country, company, and individual has its own
approach to environmental conservation, but we believethat fulﬁlling the roles and responsibilities of each position
will lead to the solution of global environmental issues.
Aiming for a better harmony between people and theenvironment, CATALER has been contributing to the global
environment with its catalyst technology as a pillar for
exhaust gas puriﬁcation of internal combustion engines. We
are also playing a role in the prevention of global warming
by developing and supplying electrode catalysts for FCVs,
the ultimate eco-car.
In addition, regarding environmental issues, the CATALERGROUP companies, including our own, are working toconserve water resources, make eﬀective use of scarce
resources, invest in energy-saving equipment, and expand
the introduction of renewable energy.
We will continue to create and provide advanced
decarbonized energy technologies and environmental
products to meet society's expectations for the global
environment, and we will continue our eﬀorts to reducegreenhouse gas emissions and protect the global
environment.

Executive Managing Oﬃcer,
Member of the Board
Environmental management Supervisor
Ryuichi Sueyoshi

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Environment

Society

Governance

ESG data

Policy typeEnvironmental targets and results
CATALER promotes activities based on the following management items and numerical targets in accordance

INPUT

with the Environmental Guidelines.
From 2021, the management indicator for CO2 emissions has been changed from original unit to emissions inorder to achieve carbon neutrality. In addition, we will expand the scope of management to the entire group, andthe entire CATALER Group will work together to reduce CO2 emissions.

Raw materials
PRTR Target substances

We will continue to engage in environmental activities to achieve our 2030 target by promoting continuous
improvement to contribute to environmental preservation for the realization of a sustainable society.

Year 2022
Control item

Scope ofcoverage

CO2 emissions (t)at plants

CATALERGroup as a
whole

ー

Head Oﬃce

Basic unit
[kg/1,000
pieces]44.2 or less

37.78

Eﬄuent water quality Head Oﬃce

Voluntarystandard
value

Below
voluntarystandard

Below
voluntarystandard

Waste generated(kg)

Indicator Target value

54,051〇〇〇

367,420kg

61,555m3

Underground water

82,070m3

61% decrease vs. 2013(2013 actual 45,058 tons)

Maintain below 2018 actuals(less than 44.2 kg/1,000 pieces)

Material
procurement① pH : 6.6~8.2 ② SS : 15 mg/L or less ③ COD 10 mg/L or less ④ BOD: 10 mg/L or less
⑤ Ammonia, ammonium compounds, nitrite compounds and nitrate compounds: 70 mg/L or lessEnvironmental compliance

241 kg

Biochemical oxygen demand
(BOD)

70kg

Suspended solids(SS)9kg

Ammonia and other compounds 2,972kg

Emissions to the atmosphere

EnergyElectric power

19,496Mwh

City gas

2,131kNm3

Kerosene

1 kℓLight oil

52 kℓGasoline

1,732 kℓ

0 kg

Ozone-depleting substance
Production

Waste, etc.

Period: April 2022 to March 2023
Target: Domestic sites (Head oﬃce)

923 kg

PRTR target substances

Maintain below voluntary standard*Self-evaluation criteria for achievement of goals : "○": goal achieved,"×": goal not achieved, "-": cannot be evaluated174,137 m 3

Chemical oxygen demand(COD)

5,098kgTap water

Discharge to water bodies
Drainage volume

Water resources

Actual results Self-evaluation (*) Landing target for 2030 (target ﬁgures)

49,863

Product
development

Copier paper

We continue to achieve our targets for waste generation and wastewater quality.

OUTPUT

Business•R&D sites (ARK)

Reclamation

0 kg

Incineration

2,531 kg

Recycle processing

239,516 kg

Sale

268,423kg

Product
Automotive catalysts

5,625,332 pieces

Motorcycle catalysts

776,023 pieces

Under the environmental guideline, we have introduced an environmental management system to promote not
only compliance with all environmental laws, regulations, ordinances, agreements, and agreements withcustomers related to our corporate activities, but also cooperation with our aﬃliates and related industries, aswell as collaboration and cooperative relationships with a wide range of environment-related segments ofsociety.
In the past ﬁve years, there have been no violations of environmental laws and regulations and no serious
environmental pollution. There have also been no environmental complaints.

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Environment

Society

Governance

ESG data

Policy type

Training and awareness activities
CATALER believes that raising environmental awareness among employees is very important in order tocontribute to a sustainable society, and we promote environmental education and awareness programs for our
employees. We also provide specialized training, such as ISO 14001 internal auditor training, for those in chargeof environmental operations.
Time(Actual results for 2022)

Purpose and contents

Environmental basic
training

Once/year

New hires are provided with basic knowledge about the environment,
understanding of ISO 14001, and CATALER's approach to the environment.

Environmental
Refresher Training

Once/year

Have all employees to deepen their understanding of ISO 14001 and CATALER's
approach

Environmental
internal auditor training

Once/year

To conduct ISO 14001 internal audits, internal auditor candidates learn about therequirements of the standard and the company's internal audit mechanism.

Training on related laws
and regulations

Once/year

Practitioners of product development and process design learn about environmental laws and regulations

Energy conservation declaration
Raise awareness of activities by having each employee declare and implement
Feb. and Jun.
Environmental declaration
environmental and energy-saving initiatives

Strengthen global environmental management
Based on the environmental guidelines, CATALER has been working with each of its overseas bases to reduce
environmental impact. Since FY2021, we have been monitoring the actual quality of wastewater and waste
emissions at each of our overseas bases to improve our global environmental management.

ISO14001 Certiﬁcation Status
CATALER GROUP

ISO14001

CAC

CCC( China)( Thailand)( South Africa)

October2019

November
2006

July
2011

June
2007

( Head oﬃce)

CTC

CSA

CNA

( North America)

CIC( Indonesia)

November November
2006
2016

CIN

CEC

( India)( Czech Republic)

March
2020

August2023

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Environment

Society

Governance

ESG data

Policy typeEnvironmental load and resource saving
To realize a sustainable society, we need to shift from a mass-production, mass-disposal type system to acircular economy. In addition, in order to protect the earth's ecosystem, it is required to reduce environmentallyhazardous substances by complying with laws and regulations and considering the product life cycle.
We are working to reduce waste through thorough separation of waste and various recycling methods.

Waste reduction

Approach / Creation of practical-level materials by controlling crystals
1st generation Providing high heat resistance0 .0 4 0

0 .2 70 .2 0

0.24

2018

2019

O

2020

2-

Unit lattice modelLow temperature OSC

1st generation / reduction to promote crystal growth

Pressurized molding + High-temperature

Synthesis processes

Homogeneous substitution of some Ce

2nd generation / atomic sites with Pr atoms
Zr siteCe+Prsite

2021

1nm

CZ powder

0.00

0.00
*

3+

5μ m

Responding to the needs ofexpanding environmental vehicles

0.02
0.01

0.05

2017

Pr

(raw material)

High- High heat resistantPressurized
pyrochloretemperaturemoldingtype CZ
reduction

Existing

1st generation

2022(Oxygen utilization rate [%] )OSC Capacity

With the accelerated development of high-eﬃciency engines and electriﬁed vehicles, as well as stricter vehicle
emission regulations worldwide, three-way catalysts are required to have more eﬃcient puriﬁcation functions. To
take full advantage of the performance of the three-way catalyst, an oxygen storage material that adjusts theatmosphere in the exhaust gas to the theoretical air-fuel ratio is essential.
Focusing on the pyrochlore structure, which is characterized by "slower and higher capacity" oxygen storage
properties than conventional materials, CATALER has worked on the development of this material and thepractical application of catalysts using it. In particular, improvements in high-temperature heat resistance,
performance in low-temperature ranges, and response to gas atmospheres, which have been challenges, havebeen made over three generations, expanding the number of applicable vehicle models and contributing to theglobal deployment of vehicles with low environmental impact. Also, increased performance contributes to the
reduction of precious metal usage.
This technology received the 72nd Society of Automotive Engineers of Japan (JSAE) Award for Best Paper in
2022 for the subject "Practical Application and High Functionalization of Highly Heat-resistant Pyrochlore-type
CeO2 -ZrO2 Oxygen Storage Material".

400
300

2nd generation

200

1st generation

100
300

Cs-STEM EDS atomic column mapping analysis

500

700

Temperature ( ℃ )Pr replacement improves low temperature OSC(*) Calculated on a ﬁscal year (April-March) basis until 2017, and on a yearly basis (January-December) thereafter.

Reduction of precious metal usage through improved catalyst
performance

2nd generation SEM images and3rd generation / High speciﬁc surface area without loss of heat resistance

100

1st
generation

80
60
40
Existing

20
0

0

20

40

60

80

100

High heat resistance(Percentage of pyrochlore structure retained [%])

Combines high heat resistance with OSC
capacity approaching the theoretical limit

O2 emissions
High heat resistance

0 .2 9

4+

Ce

0.03

0 .0 2 9
0 .2 90.05
0.04

0 .3 2

0.10

4+

Ce

(Percentage of pyrochlore
structure retained [%])

0.15

4+

Zr

Low temperature OSC
performance

0.038

0 .0 3 9

Zr

100
80
60
40

2nd
3rd
generation generation

20
0
0.5

1.5

2.5

Speciﬁc surface area
( Relative value)

Low-temperature
oxygen-releasing property

0.30

0.20

2nd generationPr
replacement(OSC capacity [umo1/g-cat] )(kg/thousand pieces)

0 .0 4 4

Improvement of oxygen release
rate by optimization of speciﬁc
surface area (crystallite size)

1st generation
4+(Ce-K absorption edge
E change [eV] )Basic unit (t/1,000 pieces)(Thousand tons)

0 .0 4 5

3rd generation

Ce site Pr uniform substitution
improves OSC at low temperatures

Size
optimization

Waste volume (thousand tons)

Trends in waste

0.25

3rd generationby promoting crystal growth

2nd generation

CATALER is working to develop construction methods that do not discharge excess sludge in catalyst
production, reuse waste materials and reduce waste, mainly through the Eﬀective Resource Utilization
Subcommittee. 2007 achieved zero emissions of landﬁll waste, and this continues to be achieved.
The year-on-year deterioration of basic unit in 2022 is due to an increase in waste resulting from periodic cleaningof sludge storage tanks, which is conducted once every ﬁve years.

Evolution of pyrochlore-type CZs
Oxygen emission speed

Basic concept

40401

CeO2

40399

2nd
generation

40397
40395
40393

3rd
generation

0

CeO2-X

100

200

Time (sec)(sec)

Combines low-temperature performance andhigh heat resistance at a high level

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Table of contents
Editorial policy

Top message

CATALER's
Sustainability

Introduction of
CATALER products

Environment

Society

Governance

ESG data

Policy type

Climate change
Toward carbon neutrality in factories

Basic concept
CO2 zero emissions and declarations of carbon neutrality are accelerating the transition to a "decarbonized"
society, and eﬀorts by companies to reduce greenhouse gas emissions are becoming increasingly important.

CATALER is striving to achieve "Better Harmony between People and the Environment" as stated in its
management philosophy, and is challenging to achieve carbon neutrality at its global factories by 2035.

CATALER has set emission reduction targets for CO2 , a major cause of global warming, and is working to
Global factories CO2 emission targets

achieve them.

2030: Reduction of 61% or more compared to 2013

CO2 reduction Initiatives

2035: Achieve carbon neutrality

In order to achieve the CO2 reduction target, we have been formulating and implementing improvement plans,
and have steadily accumulated results. On the other hand, in recent years, the establishment of our overseas
sites and production ﬂuctuations due to changes in domestic and international conditions have had an impact on
CO2 reduction, but we will continue to actively develop various initiatives to achieve even greater reductions in
the future.

We have been working on the "planning of a carbon neutral scenario for factories," "formulation of a carbon
neutral business strategy and development of new technologies," and others. In this way, we are making
steady progress toward carbon neutrality.

CO2 emissions trends（ton-CO₂）

2035
Global factories achievecarbon neutrality

60
50

55.71

54.80

53.63
48.65

49.86

2030
▲61% (compared to
2013)

40

30
20

10

0

2018

2019

2020

2021

Utilization ofrenewable energy2022(including credits)

Main Initiatives and Eﬀects
Main initiatives
Improved eﬃciency of
production process

Improved eﬃciency of
non-product ion processes

Eﬀect (t/year)

F u r n a ce b a tc h up

24.9

A ddit ion o f energ y s a vi ng m o d e f o r f urna c e

17.8

N u mbe r o f c ha ng eo vers d ue to ta nk rep l a c em ent

2.5

E n gi n e b enc h reg enera ti ve p o w er a c q ui s i ti o n

62.8

R e du ct i o n i n o p era ti ng ho urs o f q ua l i ty
con t r ol eq ui p m ent

45.2

CO 2 emissions

2013

Innovation+
Routine
Improvement

2025

2030

2035

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Conservation of water resources
Basic concept
Around the world, we are experiencing increased water procurement risks due to droughts and other factors, aswell as more severe ﬂooding damage. We must respond to water risks around the world. In addition, as a company
that owns factories, we must take measures to prevent water pollution and other forms of pollution.
CATALER is committed to preventing water pollution and reducing water consumption from the viewpoint of nature
conservation.

Water pollution prevention
CATALER has state-of-the-art wastewater treatment facilities equipped with biological treatment and activatedcarbon treatment. We have a system with a safety device that automatically monitors each item of water quality at
all times and switches to automatic emergency tank discharge in the event of an abnormality to ensure that problem
wastewater is never released outside the company. In addition, we have established strict voluntary standard values(1/20 of the legal limit for some items) and conduct periodic measurements.
In FY2022, no legal violations or other problems have ever occurred.

Water use reduction
To minimize water consumption, we are working to use recycled water and conserve water by circulating facility
cooling water, etc.

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Society
Quality assurance

15

Supply chains

18

Respect for human rights

20

Human resources

21

Occupational safety and health

26

Health28Social contribution activities

31

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Table of contents
Editorial policy

Introduction of
CATALER products

Top message

CATALER's
Sustainability

Society

Environment

Governance

ESG data

Policy type

Quality assurance
Quality Management System

Quality guidelines
The "Quality Guideline" expresses our approach to implementing one of CATALER's management philosophies,

In order to deliver products of consistent high quality, CATALER has established a rock-solid quality"Contribute to customer satisfaction and the creation of a prosperous society through the provision of advanced

assurance. We are promoting the acquisition of ISO9001, the standard for quality management systems, as welltechnologies and products that aim for better harmony between people and the environment". We haveas IATF16949 certiﬁcation for all of our group companies.

established these guidelines so that we can continue to provide high-quality, safe, and functionally advanced

In addition, we operate internal quality-related meetings for each purpose to ensure early resolution andproducts and services that satisfy our customers by putting the customer ﬁrst, and have a common

prevention of quality defects and abnormalities. Through these eﬀorts, we are making the quality situation visible

understanding of "quality" as the foundation of CATALER on a global scale.

to all levels of employees, supervisors, and top management, as well as to all business units, in order to speed
up our response and prevent the occurrence of problems and recurrence of problems.

Continuous improvement aimed at customer satisfaction

In addition to providing products that do not have defects on time, we are promoting the provision of new technologies

and products and the continuous improvement of our products and manufacturing processes with the customer ﬁrst.

Promotion of built-in quality with ownership*1

ISO9001/IATF16949 certiﬁcation status
CATALER GROUP

CAC(Head oﬃce)

CCC

CTC

CSA

CNA

CIC

CIN

CEC

(China)(Thailand)(South Africa)(North America)(Indonesia)(India)(Czech Republic)

̶

July

̶

̶

̶

̶

November

OctoberNovemberAugustOctober

Octoberacquisition in

2003

2004

2004

2015

2017

Based on the concept that "quality is created in the process," we will incorporate product quality and operational quality

and promote the strengthening of cooperation between "previous process" and "following process" including customers.

Maintain and improve IATF16949 quality management system*2

ISO 9001(QS 9000)

September

IATF 16949(ISO/TS 16949)

December

1997

2002

2022

We will maintain IATF quality management certiﬁcation, which is trusted by our customers, and continue to improve andevolve.
*1 Built-in quality with ownership
An initiative led by Toyota Motor Corporation to ensure that "quality is built in the process" is put into practice by adding a scientiﬁc

2005

March
2006

Scheduled to

February2024

approach and aiming to "be able to judge on the spot whether a job is good or bad."*2 IATF （International Automotive Task Force） 16949
A quality management system standard to prevent defects and reduce variation and waste in products and services in the automotive
industry. It deﬁnes requirements for quality management systems to achieve the following three objectives: (1) prevention of defects, (2)reduction of variation and waste in the supply chain, and (3) continuous improvement. All CATALER Group bases are working to obtaincertiﬁcation.

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Governance

ESG data

Policy typeContinuous Quality Improvement (C-QIC)

CATALER Quality Conference Body List
Conference Bodies/
Liaison Letters

Society

Environment

Frequency

Attendance

AgendaAudit improvement
reporting committee

Once/month

Top management
General Managers
C-QIC Promoters

Quality meeting

Once/month

Top management
Product realization
related divisions

Quality Liaison
Committee

Once/month

Practitioners in productrealization related
divisions

Quality status at Head oﬃce and each globalsite and continuous improvement

MONOZUKURI MTG.

Every day

Production, Manufacturing
Engineering
Facilities, Quality Control

Quality problems that occurred on theprevious day and corrective actions
Quality Information, EDER*1

C-QIC promotion status
Eﬀectiveness review of prevention andrecurrence prevention
行間 18pt
Quality status at Head oﬃce and each global site
Customer satisfaction survey, Continuous
improvement

Flash report

As needed

Quality contact ateach site

Disseminating information on quality
problems (within 24 hours)
Inspection of the same method line

Global Production
Quality Meeting

Once/year

Quality status of headoﬃce and each global site

Sharing of quality activities between the
Head oﬃce and each global site

*1 EDER : (Abbreviation for Early Detect Early Resolution) A system for early detection and resolution of quality problems.

Promotion of TQM Activity

Since 2012, CATALER has been implementing the C-QIC (Cataler-Quality Innovation Challenge) in order to makecompany-wide eﬀorts to "create processes that do not produce defective products," "create equipment that does
not break down," and "build business processes that do not fail."
C-QIC (Cataler-Quality Innovation Challenge) is an initiative to improve the quality of work based on theconcept of "Built-in quality with ownership". The challenge is to continuously improve the quality of products andwork through the creation of standards that prevent problems from occurring and a system that prevents
problems from reoccurring.
These eﬀorts have led to improvements in management quality, such as "eliminating rework and allowing each
employee to proceed with work with conﬁdence," "smoothly passing on work to others, leading to thedevelopment of multi-skilled workers," and "converting time spent dealing with problems into more creative work,"
thereby contributing to the provision of products and services that exceed customer expectations. We contributeto the provision of products and services that exceed customer expectations.

Work structure and procedures to prevent recurrence

Design standards• Drawing

The automotive industry is said to be in the midst of a once-in-a-century period of great change, with the

emergence of new businesses in addition to electriﬁcation, information technology, and intelligence. Under
these circumstances, CATALER has placed the concept of TQM (Total Quality Management) at the core of
our management, and we are practicing "quality management" with the participation of all employees, aiming
for sustainable success under the basic principles of "Customer First, Continuous Improvement, and All
Member Participation". Through these eﬀorts, we received the Deming Prize, the world's highest-ranked TQMhonor, in 2015 and the Deming Prize Grand Prize in 2018. In addition, the Deming Prize was given to CCC

Supplier

Recurrence
prevention• Technical Contacts

Ensuring
consistency

QualitymanualPermanent
measure• Production
Engineering Standard• Process and Quality Chart• Inspection methods• Design guidelines,

Standardize
andpass on work procedures

Product quality• QC process chart

Assumptions /Systematic diagram• Check sheet• Inspection methods

etc.

Input

Ensuring consistency

MONOZUKURI standards

Ensuring
consistency• Inspection manual, etc.

Work instructions/ WISDOM*2
Business standards

Quality of service

OutputRecurrence
prevention

based in China in 2022 and CNA based in North America in 2023
Since receiving the Deming Prize Grand Prize, we have continued to utilize

C-SQAM*1

Customer*1 C-SQAM : Cataler-Supplier Quality Assurance Manualand review the mechanisms created through our TQM activities in response

This is a summary of items to be complied with by suppliers based on CATALER's "Basic Purchasing Agreement" and other documents,
especially those related to quality assurance of delivered parts and materials.

to the ever-changing business environment and promote quality management*2 WISDOM : Work Instruction Sheet for Divisional Operation Management

for sustainable success on a global basis.
Deming Prize Medal

CATALER has two types of work standards. In addition to the work procedures mainly used at the manufacturing site, we also
standardize the work of the administrative department using our own format (WISDOM) .

Cataler Sustainability Report 2023

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CATALER's
Sustainability

Introduction of
CATALER products

Top message

A system to ensure product quality (C-TOP)
resources, and framework that continues to evolve based on the concept of self-improvement. As one speciﬁc
initiative, each department related to product realization is collaborating to review the conventional quality
to identify important processes and timingof activities of each function related to product realization and coordination among functions in order to realize
zero defects in the market in the future, and to constantly evolve the quality assurance system.

Research &Development

Production
Engineering

Quality
Control

Production

Production
Control

Purchasing

Cost
Planning

Accounting& Finance

Corporate
Planning

Safety &Environment

Supplier

M ar k e t in g
Advancedd e v el o p m e n t*4 P-DRBFM:Abbreviation of Process-Design Review Based on Failure Mode. A tool to promote defect prevention by focusing on changes and variations in
new process design.
*5 P-FMEA:Abbreviation of Process Failure Mode and Eﬀect Analysis. A tool that applies Failure Mode Eﬀects Analysis to process control to increase thereliability of process control.

Quality control training and human resource development

R & D project report

Gate conference*1

Development project report

Important task

Project promotion meeting (review of development plans, determination of production preparation rank)
Development project report

D-DRBFM*2 / D-FMEA*3 implementation
Development project report(ﬁnal version)
Before product planning meeting proposal (product speciﬁcations, FIX for mass production process, FIX for internal and external manufacturing)
D-DRBFM / D-FMEA Implementation

社会④

Title

TQM basic training
C-QIC (Built-in quality with ownership)training

Problem solving / Issue achievement training
QC circle hierarchy training
SQC ( Statistical Quality Management)
Seven QC Tools/ New Seven

training

QC Tools Study Session

ISO / IATF Knowledge Education▶ Click here for C-HAM

P-DRBFM*4 / P-FMEA*5 Implementation
New supplierinspection

from new hires to executives, according to their job qualiﬁcations, ranging from training in the Seven QC

Quality control training list

Kick-oﬀ of product planning meeting (determination of development targets, performance, quality, and cost planning FIX)

design*3 D-FMEA: Abbreviation of Design Failure Mode and Eﬀect Analysis. A tool to advance failure mode eﬀects analysis of a design.

Tools and basic knowledge of quality control to training in advanced SQC methods.

Medium- to long-term management planP r o du c t

product design of new products.

Development System (C-HAM) , which includes an in-house training curriculum for all levels of employees,

Global VISION 2025

New supplierinspection

Policy type

CATALER actively educates and develops quality human resources based on the Human Resource

Quality assurance system chartSales

ESG data*2 D-DRBFM:Abbreviation of Design-Design Review Based on Failure Mode. A tool to promote defect prevention by focusing on changes and variations in the

promote TQM activities and aim to further strengthen quality management by building an organization, human

Step

Governance*1Gate conference :A meeting body to determine whether or not each phase of the transition to mass production is feasible, as deﬁned in the C-TOP.

In order to continue to provide customers with the high-quality products they demand in a timely manner, weassurance system chart (C-TOP: CATALER-Total Operation Procedure)

Society

Environment

Quality control training

Table of contents
Editorial policy

New supplierinspection

New supplierinspection

Gate clear
sheet

P r o du c t i o n

p r e p ar a t i o n

Product design review: Product DR (Performance/quality to Gate sheet)
Quality conﬁrmation trial (Oﬀ production tooling/odd process)
QC process chart

Production transition decision meeting (including equipment transition decisions)Massp r o du c t i o n

Quality conﬁrmation production(reproducibility check)

Transition to mass production decision meeting
Initial control completion meeting

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Supply chains
Procurement guidelines
CATALER aims to "create a sustainable, recycling-oriented society" and "continue to protect a clean earth for
future generations" and contribute to customer satisfaction and the creation of an aﬄuent society by providing
advanced technologies and products that aim for better harmony between people and the environment. To this

6. Compliance with regulations and ensuring conﬁdentiality
CATALER aims to be a company that is loved and trusted by stakeholders and complies with relevant laws and social norms in its
procurement activities.
We pay careful attention to the handling of conﬁdential information obtained through transactions.

end, we aim to procure materials, parts, and equipment that excel in quality, technology, cost, and delivery time,and are developing procurement activities based on six basic concepts.
The procurement guidelines are as follows
1. Open, fair and equitable transactions
As a partner in creating technologies and products of the highest quality that exceed the expectations of our customers, we seek a wide
range of suppliers with a fair and impartial stance, both domestically and abroad.
In selecting suppliers, we comprehensively take into account "safety awareness, improvement attitude and stability" in addition to "quality,
technology, cost, and delivery."
2. Mutual development led by mutual trust
We intend to continue to compete successfully with our competitors together with our suppliers to achieve sustainable growth. In thisway, we seek to achieve mutually beneﬁcial development and build Win-Win relations.
To this end, we believe it is important to foster close two-way communication, learn together with them, and build relationships of trust.
3. Promotion of green procurement
CATALER promotes environmentally conscious development, design, and production activities under the management philosophy of "Better
Harmony between People and the Environment."
To this end, we aim to purchase environmentally friendly "materials and parts" and "facilities and equipment" from environmentallyconscious suppliers.
4. Recommendation of local procurement
CATALER aims to be a global company that competes in the world, and is actively engaged in local production and local procurement,
seeking a wide range of opportunities for corporate activities worldwide.
Through these activities, we aim to contribute to local communities and become a good corporate citizen.

Management system
At CATALER, the Purchasing Division oversees the management of transactions with suppliers and promotes
procurement operations in cooperation with related internal departments and overseas bases.

Supplier sustainability assessment items
In order to conduct procurement activities in accordance with our procurement guidelines, we conduct thefollowing evaluations.
1. Evaluation of suppliers at the time of selection• Safety management and safety activities in the workplace• Compliance with environmental laws and regulations• ISO 9001 (quality management system) certiﬁcation• Containment of environmentally hazardous substances in products• BCM (Business Continuity Management) initiatives
2. Periodic evaluation of current suppliers• Workplace safety, quality performance, price competitiveness, on-time delivery, technology/improvement
proposals, and management conditions• Status of BCMS system and conﬁdentiality management

5. Promotion of business continuity activities
CATALER aims to be a disaster prevention No.1 company, and is working to maintain and improve its ability to respond to and recover fromthe various threats surrounding its business.
We are promoting business continuity activities together with our suppliers in order to realize "securing human life and safety" and"continuing reliable supply to customers."

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Supplier Sustainability Guidelines

Governance

ESG data

Policy type

Compliance training

CATALER, together with its suppliers, promotes the following initiatives to contribute to the creation of alivable planet and an aﬄuent society through the provision of products and services.
Human rights & Labor

ComplianceSociety

Environment

Local and global society

We educate our employees on various laws and regulations (e.g., Subcontract Act, Antimonopoly Act, etc.)
and inform them of the "Guidelines for Sound Procurement of Goods and Services" so that they can conduct
procurement operations in a fair and law-abiding manner. In addition, we have developed a handbook on ethics
and conduct for all employees to ensure that they are fully aware of the importance of ethics and conduct inmaintaining and sustaining equal relationships and attitudes with suppliers.

Addressing Responsible Mineral Procurement (Conﬂict Minerals)

Compliance with laws andregulations and their spirit

Respect for human rights

Environmental conservation

Management and protection of
conﬁdential information

Elimination of discrimination andharassment

Contribution to the creation of arecycling-oriented society and system

Protection of intellectual
property

Abolition of forced labor

Responsible procurement of
resource and raw material

Export transaction management

Wages

Contribution to the community

Corruption prevention

Working hours and a safe andhealthy working environment

Information disclosure to
stakeholders

CATALER is promoting procurement activities that do not include minerals that may be a source of funding forarmed groups or human rights violations such as child labor, forced labor, or labor under poor conditions.
Speciﬁcally, in support of the objectives of the RMI, a global leader in conﬂict mineral initiatives, we conduct
surveys of minerals across the supply chain using the RMI survey form, which is an industry standard.
In the unlikely event that a signiﬁcant risk is discovered in the supply chain, we will implement risk mitigation
measures, such as requesting corrective action from our suppliers.
We will continue to work with our suppliers to ensure responsible mineral procurement throughout the supply▶Click here for Supplier Sustainability Guidelines

chain.

Communication with suppliers
CATALER actively engages in various forms of communication with its suppliers to promote CSR activities andclose cooperation in risk management. Through these eﬀorts, we are promoting maintenance and improvement
to ensure safe and smooth transactions.

Main communication opportunities
Development of priority
implementation items
Gathering to discuss safety
and the environment

Time

Purpose and contents

Beginningof the year

Distribution of the President's message and CATALER's
initiatives and requests to our suppliers

AugustPrevention of disasters and environmental accidents atfactories, alerts regarding quarantine, etc.

CSR study session

November

Sharing information on compliance and SDGs activities, etc.

Information exchange meeting

Twice/year

Sharing of long-term demand trends, etc.

Conﬁrmation of safety in theevent of a disasterIn case ofdisasterConﬁrmation of supplier damage , impact on operations, etc.

Recognition of suppliers

Once/year

Expressing gratitude to suppliers for their contribution toquality and cost reduction

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Society

Environment

Governance

ESG data

Policy type

Respect for human rights
Basic concept

Implementation of human rights due diligence

CATALER's management philosophy is "to comply with the spirit of domestic and foreign laws and regulations,

At CATALER GROUP, all employees, including directors and oﬃcers, are committed to deepening theirand to practice open and fair corporate activities." Under this philosophy, CATALER conducts business activities

understanding of human rights and to achieving a society in which human rights are respected in accordancein all countries and regions where it does business, aiming to be the best company in the town, loved and reliedwith our human rights guidelines. These human rights guidelines also stipulate the implementation of humanupon by local residents.

rights due diligence, which we began to address in 2023. As indicated in the UN Guiding Principles on BusinessIn order to continue our business in the future, we recognize that we are dependent on the support of many
people, including local residents, suppliers and other business partners, and customers, and we will continue topromote respect for human rights in accordance with the United Nations Guiding Principles on Business and

Implementation of education and training
We regularly implement education and training programs to raise employees' awareness of human rights andHuman Rights.

to create a corporate culture of respect for human rights.

Human rights guidelines

In FY2022, we provided educational programs for department managers and above on the theme of "BusinessIn October 2023, the Management Meetings approved the Human Rights Guidelines of CATALER Corporation.
In accordance with international norms such as the Universal Declaration of Human Rights, we will promote
activities that respect human rights, taking the United Nations Guiding Principles on Business and Human Rights
as a framework for implementation.
We expect this guideline not only to apply to all oﬃcers and employees of the CATALER GROUP, but also to
be understood and supported by all of our business partners, including suppliers, who are involved with our
products and services.
We also identiﬁed four key themes: migrant and forced labor, child labor, discrimination, and harassment.
We will use this as a guideline to promote our eﬀorts to respect human rights and report on our progress andresults.

and Human Rights" to deepen their understanding of not only human rights issues in the workplace, but also
human rights issues for which companies must be socially responsible.

Consultation and reporting desk
As internal consultation and reporting desks, we have created an environment in which whistleblowers caneasily consult with us by establishing the "CATALER Consultation and Reporting Desk" and the "All Toyota Speak
Up Desk," as well as a consultation and reporting desk at a lawyer's oﬃce. We have established contact desks
in regions outside of Japan and have a global system in place.

Initiatives for supply chains
Based on the human rights guidelines, we established the Supplier Sustainability Guidelines in November 2023
to prevent the occurrence of human rights violation events in advance and to build a sustainable supply chain.

▶Click here for the Human Rights Guidelines of CATALER Corporation.

We are committed to working together with everyone in our supply chain to realize a sustainable society.

Promotion structure• Protection of human rights and improvement of working conditions

We have established a scheme in line with the UN Guiding Principles on Business and Human Rights topromote human rights initiatives. In addition, the Global HRD

and Human Rights, we plan to continue our eﬀorts to build a sustainable value chain.

*1

Meeting reports and deliberates on directions

We ask our suppliers to respect human rights in our Basic Business Contract and Supplier Sustainability
Guidelines.

and issues, and important matters are submitted to the Management Meetings for discussion andBased on the human rights guidelines, we will promote the penetration and dissemination of the following

decision-making, thereby providing oversight.

initiatives not only within our own company but also throughout our supply chain.

• Overall responsibility for human rights: General Manager, Chief of General Aﬀairs and Personnel Function(1) Respect for human rights• Personnel Division plays a central role, collaborating with General Aﬀairs Division, Purchasing Division and(2) Migrant and forced laborother divisions.

(3) Child labor and young workers• Ongoing implementation of human rights due diligence for overseas sites, etc.

(4) Prohibition of discrimination, respect and*1 HRD: Human Resource Development. A generic term for methods and activities used for the training and development of human resourcesin a company.

▶Supplier Sustainability Guidelines

acceptance of diversity(5) Harassment(6) Wages and beneﬁts(7) Working Hours(8) Freedom of association and collective
bargaining

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Society

Environment

Governance

ESG data

Policy type

Human resources
Approach to human resources
Due to global business growth and changes in the environment, social issues that need to be solved areincreasing and becoming more complex. Therefore, it is important to create a corporate culture in which theentire company works together to tackle these issues and to develop human resources who can play an activerole on a global scale.
At CATALER, we believe that the irreplaceable asset for achieving sustainable success is our humanresources. By promoting the creation of systems that enable employees to work in a diverse and ﬂexible mannerand investing in human resource development, we will realize "everyone at CATALER shines toward the future".

Promotion structure
Personnel and labor management and human resource development are under the jurisdiction of the Human
Resources Division.
We are involved in the operation of personnel systems, planning and promotion of work style reforms, humanresource development initiatives, prevention of problems, and promotion of employee education.

Diversity
Promotion of women's activities
CATALER believes that promoting the advancement of women leads to the enhancement of corporate value.
To this end, in ﬁscal year 2017, we launched "Tsubomi," a working group organization led by women to absorb
issues related to women's activities within the company, and promoted its activities.
In April 2019, we formulated the second phase action plan based on the Act on the Promotion of Women's
Active Engagement in Professional Life (plan period: April 1, 2019 - March 31, 2024), and are focusing on
development to achieve the goals, including "Iku-Boss*1 training" for managers, "Women Leader Training" forwomen who are candidates for leadership positions, and "Women's Exchange Meetings" outside the company.
Furthermore, as one of the priorities of the SDGs from 2022, we have set the "realization of employment withjob satisfaction" as a priority issue, and are promoting a workplace environment where diverse humanresources can work with vitality and peace of mind, and where a work-life balance can be achieved.
As targets for 2030, we aim to increase the percentage of female new graduates hired each year to 20% or
more, and to increase the number of female managers by ﬁve times (compared to 2020), in order to create anorganization where employees, regardless of gender, can thrive and play an active role.

Employee attitude survey
Since 2004, CATALER has conducted an attitude survey of employees and senior staﬀ to identify various
issues related to corporate activities and to create a workplace environment and improve workplacesatisfaction. The response rate has exceeded 90% every year, with a response rate of 92.8% in FY2022.

▶Click here for the action plan based on the Act on the Promotion of Women's Active Engagement in Professional Life
No. ofpeople40
30

department's policies reﬂect the results as targets for improving the workplace environment. We will continue to15

0administrative negotiations, year-round consultative working groups, and trinity roundtable meetings among top
management, the labor union, and the managers exchange meeting, where the three sides are earnest in dealing
with each other and actively addressing various issues. In addition to strictly adhering to the overtime hours
agreed upon by labor and management, even fewer internal management hours are set, and all union members
work within these hours with an awareness of a better work-life balance.

20

22
17

5
2018

10
2019

5

2020

2021

13

10

15

2022

2023 (Fiscal year)

0

Target 16
people

8

9

2018

2019

2020

2021

2022

2023 (Fiscal year)* Iku-Boss
Bosses who manage with respect for the individuality of their members, regardless of gender.

With "mutual trust between labor and management" as our management philosophy, we have establishedregular opportunities for information and opinion exchange between labor and management, such as monthly

Number of female leaders (cumulative)

Target 30
people25

105No. ofpeople15

25
20

Labor and management communication

39

35

The results are promptly disseminated to directors, general managers, and department managers, and eachpromote workplace improvements throughout the company and strive to improve employee satisfaction.

Number of "Iku-Bosses*" (cumulative total)（％）

Percentage of women hired as new graduates

10

40
30

30.8
25.9

28.6
21.7

19.4

20

2019

2020

2021

Target 10
people

8

4
2

2018

Number of female managers(cumulative total)

6
Target 20%
or more100No. ofpeople2022 (Fiscal year)

0

2
2
2021

3
3
3
2022

2025

2030 (Fiscal year)

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Society

Environment

Governance

ESG data

Policy type

Promoting employment for people with disabilities
In order to realize a society in which people with disabilities can live together in harmony, respecting eachother's personality and individuality without being separated by disabilities, CATALER is creating and expanding

Examples of Initiatives
Job creation and expansion

employment opportunities for people with disabilities and supporting them to settle into the workplace, aiming to• Acceptance of trainees from local special needs schools

be a company where they can work with peace of mind for a long time. To this end, we have established a• Establishment of mid- to long-term employment plans"Working Style Support Group" within the company to support the working styles of people with disabilities.

• Promotion of Agriculture and welfare cooperation*1
We promote the expansion of employment for people with various disabilities who have diﬃculty ﬁnding work

Work support system diagram

in companies by supporting their employment through agriculture.

grdisabilities)● Study ofp

Employees withdisabilities

environment conducive to consultation and support.

or

t
r
o

ea

*1 Agriculture and welfare cooperation (collaboration between agriculture and welfare):A system for people with disabilities to participate in society with conﬁdence and a sense of
fulﬁllment through active roles in agriculture.

l

rse

t
k

P u b li c h

nu

sup

P er

• "Vocational life counselors for persons with disabilities" are assigned at each Function to provide an

Employment rate of persons with disabilities（％）

Actual employment rate

3.0

Legal employment rate
2.27

p

Bo

ss a t w or

Support for retention and competence in the workplace
Reinforcement of support system by "vocational life counselors for persons with disabilities"

th

n

p

so

l

● General worries/troubles• Early identiﬁcation of problems and implementation of countermeasures through periodic interviews

sup

ne

D iv i si o n

sup● Improvement of• Organize training sessions for employees to foster understanding and empathy for disabilitiest

problems and issues

sup

t
or

Fostering a culture in the workplaceorcountermeasures toretention

E xt

W or k(workplace, persons withatio n s● Periodic interviews• 2.56% (as of the end of March 2023)

za● Support for trial period

the environment fornaou p p or t o r glseru p p ort

Percentage of employees with disabilities

ni

st

s
y le

up

ing

Follow-up system for retention

2.0

2.08

2.16

1.0

p
● Regular interviews, information● Regular interviews

sharing with relevant parties(Relief of health,● Study of countermeasures tomental health,problems and issues

2.40

2.27

and other problems)● Improvement of the environment and

0.0

2019

2020

2021

2022

2023 (Fiscal year)

Aggregation period: as of June 1 of each year

Nofuku Port Suzunari Iwata

Creating a workplace where people can work forever

employment conditions for retention● Work-related training, guidance, and resolution of concerns● Improvement of relationships● Improvement of work environment

For employees who have reached the mandatory retirement age of 60, we, in principle, rehire all those whowish to continue working. We will continue to respect the diverse lifestyles and work intentions of each andevery employee, and promote the development of systems and workplace environments that enable employees
to stay active with a sense of fulﬁllment and purpose in life.

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Table of contents
Editorial policy

Introduction of
CATALER products

Top message

CATALER's
Sustainability

Society

Environment

Work life balance
CATALER way work style innovation (C-WIN)
CATALER is promoting a work style innovation (C-WIN: CATALER - Work style Innovation) in which the company

streamlining and revamping operations and enabling diverse and ﬂexible work styles.

Measures implemented

Work eﬃciency
supportR evision a nd st rea mlining of w ork
I nt roduct ion of a ut oma t ion t ools (R PA) * 1

Diverse work
systems

I nt roduct ion of t elecommut ing sy st em
E x pa nsion of ﬂex t ime sy st em(for employ ees w it h short ened core hours or shor te r wor ki n g h ou r s )I nt roduct ion of short -t ime ﬂex sy st em
SeSecuring int erva l t ime bet w een w orkda y s (10 h ou r s ) *3

Work performance

I nt roduct ion of a choice-t y pe w elfa re sy st em (caf e te r i a plan )Company
Improved organizational
capacity,
Sustained success

Demonstrated ability,
fulﬁlling life

Diverse humanresources,
Each life stage

I nt roduct ion of sy st ems rela t ed t o life support (h alf -day wor k f or
sickness a nd injury , short ened w orking hour sy st e m )*1 RPA (Robotic Process Automation) : A "software robot" that can automate a series of tasks performed using a PC or other device.
It is used as a tool to improve the eﬃciency and productivity of a company's operations.

Enhancement of systems to support work-life balance
CATALER is actively working to expand and improve systems that enable employees to balance work andfamily life.
We will continue to improve the system and review its operation methods while incorporating changes in social
needs, such as changes in employee awareness regarding work styles and legal revisions.
SystemCooperation

Union member
Personnel Division

C-HAM committee

I nt roduct ion of lea ve sy st em for hospit a l visit s*4 MY TIME system: A system that allows employees who cannot use the ﬂex system or telecommuting to arrive at work later or return home earlier within a set time range.

Labor union

Overseas bases

I nt roduct ion of infert ilit y t rea t ment lea ve a nd cos t as s i s tan ce s y s te m

*3 Interval time between workdays: A rest period of at least a certain amount of time between the end of the previous day's work and the start of the next day's work (interval)

Diverse work systems,
Support for improving
operational eﬃciency

All divisions anddepartments

Each life stage*2 Oﬀ-Hour System: A system that allows employees to arrive at work later or leave earlier during set hours to expand work styles at manufacturing sites and other locations.

Removal of constraints●Promotion system

Policy type

I nt roduct ion of " oﬀ-hours" sy st em * 2 a nd MY TI ME s y s te m *4

Reform of work style (C-WIN) Image

Employee

ESG data

Category

and its employees work together to enable diverse human resources to play an active role in accordance with
their respective work-life balance. We are creating a win-win environment for the company and its employees by

GovernanceManagers exchange meeting

Contents

Reduced working hours forchildcare

A system that allows employees with children in elementary school or younger to shorten
their working hours (available until the child graduates from elementary school).

Reduced working hours fornursing care

A system that allows employees with family members in need of nursing care to shorten theirworking hours.

Short-time ﬂex work system

Flexible working hours for employees who work shorter hours for childcare or nursing careChildcare leave system

A system that allows employees to take a leave of absence if they wish, as long as the childdoes not exceed the age of two.

Nursing care leave system

A system that allows up to one year of leave per family member in need of nursing care .

Employee health support

Establishment of a medical oﬃce, a full-time public health nurse, and a system to receive
psychologist interviews

Teleworking system

A system that allows employees to work from home

Accumulated annual leavesystem

A system that allows employees to accumulate up to 20 days of forfeited annual paid leave
to be used for personal injury, illness, or nursing care.

Various leave systems

A leave system that can be used for the birth of a spouse, hospital visits, childnursing care, family care, and other occasions of congratulation or condolence.

Family allowance

Allowance for employees with dependent family members

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

External Evaluation
Kurumin certiﬁcation (2023)
2023 Certiﬁed as "Kurumin" by the Ministry of Health, Labor and Welfare.

Eruboshi certiﬁcation (2023)
2023 Certiﬁed as "Eruboshi (Level 3)" by the Ministry of Health, Labor and Welfare.

Kakegawa City Child-Raising Friendly Business Oﬃce Certiﬁcation (2019~)
Renewal certiﬁcation as a "Child-Raising Friendly Business Oﬃce" in Kakegawa City in 2022.

Certiﬁed as a Fujinokuni Child-Raising Friendly Company by Shizuoka Prefecture(2023)
Certiﬁed as a "Fujinokuni Child-Raising Friendly Company" in the Large-Scale Division by
Shizuoka Prefecture in 2022.

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Society

Environment

Human resource development

Governance

ESG data

Policy type

Initiatives for DX Human Resource Development

Human resource development system (C-HAM)
CATALER's human resource development system (C-HAM: CATALER Human Asset Management) aims to develop"human resources who can think and act on their own" who are able to recognize and solve problems and issues
on their own, and who are able to work with a sense of ownership in their work, so that they can be active
globally even in a fast-changing business environment. In addition, we implement continuous improvements on adaily basis to ensure that these human resource development eﬀorts function eﬀectively as organizational
capabilities and lead to increased customer value.
Training is structured by job level in accordance with the "Job Qualiﬁcation Standards," which clearly deﬁne
the abilities required for each position. We have created an environment in which all employees have access to

In an era of rapid environmental change, DX promotion is indispensable for CATALER's survival. This applies
not only to speciﬁc areas of design and development, but also to operations across the entire company,
requiring the entire company to work together to promote DX.
In order to strongly promote DX, CATALER launched the DX Promotion Department in 2021.
In addition, with regard to digital human resources, which are indispensable for promoting DX, we have deﬁned
three levels of DX human resources and are strengthening education for each level, aiming to develop all
employees by the end of FY2027.
We have established an education system that enables employees to acquire digital utilization skills
regardless of their experience or position, and are actively promoting the development of "human resources whocreate new value," "human resources who create new businesses and products," and "human resources who leadbusiness reforms" by improving their ability to think independently and make improvements through the use ofdigital technology.
Target: 5% of all employees (by the end of FY2027)

the training shown in the ﬁgure below , so that they can acquire the necessary skills in a timely manner.

DX Professional human resources

In addition, we have introduced the "Global Challenge System (short-term overseas dispatch)" for the purposeof developing young employees who can play an active role on the global stage, and are striving to help young

Target: 15% of all employees (by the end of FY2027)

DX Practical human resources

employees acquire language skills and quickly understand overseas operations. Training is managed andvisualized using an education management system (C-UNI: CATALER-University) .

Target: 80% of all employees (by the end of FY2025)

100%
80%

70

60%
40%
20%
0%

80

50
25

30.3

2022

2023

2024

2025 (Year)

20%

DX Practical humanresources

Correspondence courses

Business skills

Management development

Pre-assignment training

In FY2022, we established a system and structure for human resource development and focus on thedevelopment of DX basic human resources and DX practical human resources. As a result, as of the end of
FY2022, we have achieved our transitional goal in terms of the number of both DX basic human resources andDX practical human resources. In addition, in order to respond to the further acceleration of DX, we haveaccelerated the ﬁnal target year for human resource development from ﬁscal year 2028 to ﬁscal year 2027. Inorder to achieve this goal, we will also set a target number of employees for each department and aim to build afoundation for the realization of company-wide DX.

DX Basic humanresources

New employee training

English conversations

Facilitation

Activities for FY2022 and future prospects

Management

Presentation (Way of speaking)programs

Business global human resources

Global challenge

Coaching

Specialized training programs by type of work

Logical thinking

DX Technology Skills

DX training

Prospective problem solving

CSR/ComplianceManagement basics

Environment/BCM training

New manager training

QC circle

Management leadership

ISO/IATF

Policy management (KPI setting)

Heal th management, Mental heal th, Occupational safet y

At the time of
employment

Members

Leaders

Managers

Management Human Problem Safety and Quality Environment CSR
relations solving
healthQC
BCM

DX Basic human resources

Specialized training Executive development Sel f -development

Language learning

General training
Hierarchical training S e g m e n t a l t r a i n in g

15%

9

10%
5%
0%

12

14

15

Goal
Actualresults

6
2 2.2
2022 2023 2024 2025 2026 2027 (Year)

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Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Society

Environment

Governance

ESG data

Policy typeOccupational safety and health
Safety guidelines

Creating a safe work environment

Ensuring the safety and health of employees is the foundation of all corporate activities and should be theIn order to control chemical substances, etc., measurement based on the Working Environment Measurement

most important. A workplace where everyone can work with enthusiasm and peace of mind is the ideal ﬁeld

Law is conducted (in June and December) at unit workplaces to which the Ordinance on Prevention of Organic

where we can provide good products and services. At CATALER, labor and management cooperate to maintain

Solvent Poisoning, the Ordinance on Prevention of Hazards Due to Speciﬁed Chemical Substances, the Ordinanceand improve the workplace environment.

on Prevention of Dust Disorder, etc. are applied. In addition, we conduct RA (Risk Assessment) of chemical

The safety guidelines are as follows

substances to reduce risks caused by chemical substances.
We manage noise and heat workplaces based on the results of working environment measurements. Noisy● Labor-management cooperation to prevent industrial accidents

workplaces are equipped with shielding and soundprooﬁng walls in a timely manner, along with the correct● Compliance with laws and internal regulations concerning safety and healthprotective equipment.

● Continuous improvement and improvement of the safety and health management system
The company and employees will cooperate to build a safe and secure workplace and develop systems and measures toprevent disasters from occurring. In order to maintain a safe and healthy working environment, we actively promote safety
activities by establishing internal rules to ensure equipment safety, work safety, and walking safety, as well as compliancewith all laws, regulations, and ordinances related to safety and health.
In addition, we are systematically implementing continuous improvements in order to more eﬀectively execute and promote
safety and health activities.

Safety and environment meeting

President

Head oﬃce
Generalsafety andhealth manager

Industrial physician

A safe and secure work environment is the most fundamental andimportant matter for organizational performance. The meeting is
Research andDevelopment
Generalsafety andhealth manager

attended by the general managers and department heads of alldivisions, and is held to disseminate information throughout thecompany and strengthen the development of measures to realize theideal workplace environment.

Safety and health committee

The Safety and Health Committee is composed of labor and

Safety andenvironment meeting

management, with the executive committee from the labor union

Safety andhealth committee

Safety andhealth committee

Safety and healthpromoter meeting

Safety and healthpromoter meeting

participating as a member, and serves as a forum for active exchange of
opinions. The deliberations are shared between the head oﬃce and R&D
sites to address various matters related to health and safety.

Safety and health promoter meeting

This is a meeting to develop activities to all employees for safety

and health, including decisions made at the Safety and Environment
Each department

reduce the temperature experienced by workers based on the heat index (WBGT) and wind speed.

Workplace accident prevention activities
As a measure to prevent occupational accidents, RA (Risk Assessment) is conducted for each work procedure,
facility, and chemical substance, and countermeasures are taken.
In addition, before construction or non-routine work, we conduct hazard prediction activities to "prevent

Safety and health organization chart
Management
Meetings

In hot workplaces, we have installed spot coolers and large fans, water sprinklers, and other measures to

Each department

Meeting and the Safety and Health Committee.
Representative promoters from each department participate to
conﬁrm the details of the content.

accidents". Regular patrols are conducted to ensure that construction contractors comply with on-site
construction rules, and activities are also developed to prevent accidents not only among employees but also
throughout the entire premises.
In addition, we share safety information with our aﬃliated companies and suppliers, such as accident examples
from other companies, to develop a wide range of safety activities for those who work together with us.

Speciﬁc initiatives
Activities

Frequency

Purpose and contents

Top management-led
on-site inspections

Four times/
year

President and union executive committee conduct inspections and guidance for
improvement based on safety, health, risk assessment, and 4S.

Voluntary workplaceinspections

Once/month

Workplace managers and supervisors conduct workplace safety inspections toraise awareness associated with hazard countermeasures in their own workplaces.

Equipment safety
inspections

Beforeequipment use

Inspection of standard items and past failures using check sheets to prevent
occupational accidents due to equipment installation or modiﬁcation defects.

On-site construction
patrols

Once/
two months

Patrols are conducted to ensure compliance with on-premises
construction rules by contractors.

Distribution of safety cards
to construction workers

At the time ofentering

Distributed "Safety Cards" to all contractors entering the premises, which describe
the rules for construction work on our premises.

Personal safety
declarations

Once/year

Employees set their own safety goals to raise safety awareness and prevent
workplace accidents.

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Table of contents
Editorial policy

CATALER's
Sustainability

Introduction of
CATALER products

Top message

Environment

Society

Governance

ESG data

Policy typeOccupational accidents
There were no occupational accidents in FY2022.
We will continue our activities to prevent accidents before they occur.
Lost time accident and non-lost-worktime injuries
Lost time accident

Types of occupational accidents(FY 2018-2022)

Non-lost-worktime injuries

転倒of
Recoilmotionand％
12.5
forced action
切りこすれ 17%

8

12.5％

6

2

0

2

Contact withhazardous
substances

2
1

17%

1

25％

0
2018

2019

2020

2021

25％between
Caughtand entangled in
33%

挟まれ
巻き込まれ
Cutting and25％
rubbing33%

2022 (Fiscal year)

Sharing and utilization of occupational accident information
When an industrial accident occurs, we horizontally disseminate information and investigate similar locations
to make the entire company aware of the situation, and work on permanent countermeasures and prevention ofrecurrence. Global meetings are also held with overseas subsidiaries to share wisdom and experience, and theentire group is committed to ensuring safety.

Cataler Sustainability Report 2023

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Table of contents
Editorial policy

Top message

CATALER's
Sustainability

Introduction of
CATALER products

Environment

Society

Governance

ESG data

Policy type

HealthMental and physical health is the driving force for employees to thrive. CATALER has formulated a "Health
Declaration" and is committed to promoting the health of its employees.

Employee health promotion initiatives
Health checkups

Health Declaration

At CATALER, in order to protect the health of our employees, our public health nurses conduct individualinterviews with each employee after regular and special health checkups, explain the results of the checkups,
and recommend secondary checkups. The face-to-face approach leads to the early detection of physical andmental health problems and raises each employee's awareness of health management.

Corporation with excellent healthmanagement
and health declaration
健康経営優良法人
健康宣言
At CATALER, the happiness of each and every one of our employees and their

The completion rate of secondary checkups in FY2022 was 86.6%. In order to further improve the checkup rate,
the following new systems have been introduced.
• Securing "time for medical examinations" by introducing a legal holiday system• "Subsidies for medical examinations" under the beneﬁt system

キャタラーは、社員と家族一人ひとりの「幸せ」を最優先に考えています。

families is our top priority.

「心と身体がともに健康であること」はキャタラーで働く社員、家族の幸せに繋

We believe that "a healthy mind and body" leads to the happiness of CATALER's

In addition, by converting the results of health checkups into data, internal health issues are identiﬁed and theemployees and their families, and is the foundation for the company's sustainable
社員全員がやりがいを持って働き、その能力を最大限に発揮できる企業風土を醸

results are shared with employees. Based on the results, we regularly hold health education sessions on how to

成し、家族を含めて充実した日々を過ごせるよう、『健康経営』に全力で取り組

look at the results of health checkups, points to prevent lifestyle-related diseases, etc., and encourage them to

むことを、ここに宣言します。

review their lifestyle habits to improve their health status data, thereby implementing the PDCA cycle.

がり、また会社の持続的な成長と事業継続の基盤であると考えます。

growth and business continuity.

We hereby declare that we will do our utmost to promote "health management" tocreate a corporate culture in which all employees can work with a sense of
fulﬁllment and maximize their abilities, so that they and their families can have
fulﬁlling days.

1. 社員とその家族の健康を重要な経営資源と考え、「安全と健康を最優先」にする活動を行います。
1. We consider
the health of our employees and their families to be an
important management resource, and we will conduct activities thatplace2.thehighest priority on safety and health.
社員が心身ともに健康で、いきいきと笑顔で働ける職場環境と仕事の仕組みつくりを積極的に推進します。
2. We will actively promote the creation of a workplace environment andwork system where employees can work in good mental and physical
3. with
社員とその家族が自発的に健康づくりに取り組むことができるよ
healtha smile.
う、健康に対する意識向上や行動変容を促す活動を展開します。
3. We will develop activities to raise health awareness and promote
behaviorchange so that employees and their families can voluntarily
4. 健康保険組合と連携し、健康増進活動と疾病予防活動に取り組み
engage inhealth promotion.
ます。

4. In cooperation with the health insurance association, we will engage inhealth promotion and disease prevention activities.
2023 年 6 月 27 日

June 27, 2023
株式会社キャタラー
代表取締役社長
President
and CEO, CATALER
Corporation

Masashi Ishida

Gynecological examination
Gynecological examinations have been conducted in-house since F Y2018. By conducting the examinations
during work hours, the examinations can be conducted in a short period of time (30 minutes to less than 1hour), and the examination rate has been increasing year by year.
This has led to a high consultation rate compared to the consultation rate of health insurance companies,
leading to early detection and early treatment of
illnesses.

(%) In-house gynecological examination receipt rate

100

80
60
40

57

63

2018

2019

79

81

80

2020

2021

2022 (Fiscal year)

20

Prevention of infectious diseases

0In-house inﬂuenza vaccination is conducted from October to December every year. We have created anenvironment that allows for work release and facilitates vaccination through implementation during working
hours.

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Sustainability

Introduction of
CATALER products

Mental healthSociety

Governance

ESG data

Policy typeSpeciﬁc health guidanceStress checks are conducted once a year. The highexamination rate has been maintained through simultaneous
implementation with periodic health checkups, and the actual
examination rate in FY2022 was 98.6%.
Based on the results of the stress check, individualinterviews (with industrial physicians, external certiﬁed
psychologists, and public health nurses)

Environment

are held for

(%)

15
12
9

Percentage of high stress judgment
12.7

10.7

3

years of age, by expanding the scope of those eligible beyond

0

2019

2020

the statutory standards.

Food Models

models, hand weighing nutrition methods, and the introduction
and utilization of body composition analyzers.

the prevention of mental illness, early response, and[Group instruction]

prevention of deterioration. As a result, the rate of workers

As a population approach, we explain how to look at theabsent from work due to mental causes is on a downward

results of health checkups and provide lifestyle improvement
Self-care training

In addition, for those who return to work after an illness, we

guidance on diet, exercise, etc. to all employees not just those

Food model display area

who are eligible for speciﬁc health guidance. In addition, a foodhave introduced the "Short-Time/Half-Day Work System formodel display area has been set up to make it possible toInjuries and Illnesses" from 2021 to help them balance work

check proper nutritional intake at any time.

and treatment for their illnesses.
As a population approach, we provide professional self-care

General lifesaving training and AED use
training

and line-care training.
(Self-Care training)Line care training

link between sleep and mental health problems.

In order to save as many lives as possible in an emergency,
we hold an annual general lifesaving course including practical(Line care training)

General lifesaving training and AED
use training

skills and AED training for in-house safety and health promoters

Twice a year, a variety of classroom and group work education

and BCM rescue and ﬁrst-aid team members.

sessions are held for department managers, inviting outside

In addition, we prepare training materials with video clips andlicensed psychologists as lecturers.

each site in Japan to provide health consultations as needed.

2022 (Fiscal year)

understand and convincing at a glance through the use of food

introduced in 2018 as an individualized response, focusing on

One public health nurse is stationed in each medical oﬃce at

2021

We are committed to providing guidance that is easy to

EAP interviews (Employee Assistance Program) have been

Health counselingbased on the results of regular health checkups, and provide
individual guidance to all employees, not just those over 40

are held to create a workplace with a good open atmosphere.

Once a year, we host a lecture and stretching training on the

11.0

We extract those who are eligible for speciﬁc health guidance

6high-stress employees, and departmental analysis debrieﬁngs

trend.

11.0[Individual guidance]

distribute them via e-learning as classroom lectures. In
addition, we have prepared our own manual for dealing with
Health counseling

employees who are not in good health, and have placed it inﬁrst-aid kits and AED boxes in the company to ensure that
employees can respond without panic in an emergency.

We strive to create an atmosphere in which employees feel free
to consult with us.

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Introduction of
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Environment

ESG data

Policy type

As COVID-19 spreads and expands globally, all employees throughout the company are working together toprevent infection and the spread of the disease and continue to maintain good health.

• In-house walking trails
Walking trails are set up in the company to promote exercise among

Initiatives

employees.

• Daily health observation• Masks and hand sanitizers• Partitions in all areas, adequate ventilation• Limit the number of people using each room,
spread out meal times, and ensure silent eating.

The event is held in conjunction with Sanitation Week.
• Health newsletter published
Four times a year, we distribute seasonal health information.
(New employee training)

Governance

COVID-19 infection control

Health promotion awareness activities• Health education by level

SocietyIn-house walking trails

We give training to our employees on a wide range of topics,
including safety considerations, self-health obligations, response to physical illness, mental health, etc.
(Training for managers)
Safety and health training is provided for employees promoted to managerial positions to educate them onsafety and health-related matters, including how to deal with and care for subordinates and the
responsibilities of managers and supervisors.

Measures against rubella
Following the 2015 outbreak of rubella among our employees, we have strengthened our measures against
rubella. We have implemented various initiatives and maintained a 99.2% rate of rubella antibody possession.
These eﬀorts have also been covered in various ﬁelds, including external lectures and adoption for Ministry of
Health, Labor and Welfare educational materials, and CATALER's activities are also being used outside thecompany for rubella control.

• Antibody survey via interview using an in-house prepared questionnaire• Recommend vaccinations for employees who do not have antibodies or have low antibody titers• Provide full subsidies for MR vaccination costs

Corporation with Excellent Health Management
Corporation of Excellent Health Management for six consecutive years since ﬁscal 2018.

In June 2021, we began oﬀering inoculations at
workplaces. The vaccination program was expanded toinclude not only employees, but also their families and local
boards of education (teachers at nearby nursery schools,
elementary schools and junior high schools). Approximately
80% of employees have been vaccinated at their workplaces.
In addition, in October 2022, the company conductedsimultaneous inoculation of employees at workplace with the
Omicron strain-compatible bivalent vaccine and inﬂuenza
vaccine, and approximately 80% of employees have been
inoculated at work.

Workplace vaccination• In-house Infection Prevention Guide published and revised
We have developed our own in-house infection prevention measures guide based on the Shizuoka Prefecture
Infection Control Guide. Since its initial publication on February 1, 2020, the guide has been revised andupdated more than 70 times as of March 31, 2023, with additional editions.
We have also developed and implemented an exit strategy for the transition to Class 5 of the Infectious
Disease Control Law.

Passive smoking prevention eﬀorts

Initiatives

As a result of our health management initiatives, we have been recognized as a

• Conduct vaccination in workplaces• Proactive use of web conferencing and travel restrictions according tocircumstances• Clean and disinfect conference rooms and cafeterias after use.
• Conduct disinfection drills in preparation for infected persons and those inclose contact with infected persons• Promote telecommuting

Excellent HealthManagement
Corporation 2023

CATALER has strengthened its measures to prevent
passive smoking since April 2020, establishing company
wide no smoking days twice a month.
We are also reviewing the smoking areas on the premises,
relocating them to areas where there is less risk of passive
smoking, and partially closing them to reduce the risk ofpotential future illnesses to employees. Other eﬀorts include
distribution of health information to all employees, individual
smoking cessation guidance by public health nurses,
referrals to smoking cessation clinics, and use of smoking
cessation support by health insurance societies, etc., with
employees who are willing to quit smoking. As a result,smoking rates are much lower than in 2020.

In-house smoking rate trends
30

12.5％

31.7

DOWN

％

25
20

20.7
％

19.2

2021

2022

15

％

10
5

2020
0

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Introduction of
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CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy typeSocial contribution activities
Philosophy of social contribution

Shizuoka Future Forest Supporter
On January 16, 2023, we signed a "Shizuoka Future Forest Supporter"

Based on our management philosophy "to contribute to the development of the community and to be aagreement with Shizuoka Prefecture and Kakegawa City to support theircompany that is loved and trusted by local people", CATALER actively promotes social contribution activities,

reforestation activities. On May 11, 2023, we planted approximately

either independently or in cooperation with partners in areas where we do business, with the aim of growing

4,000 trees in a 0.8 ha area of the seawall on the south coastline ofcommunities and creating a prosperous society.

Chihama, Kakegawa City. In order to pass on the rich forests to thenext generation, we will continue to clear the undergrowth and monitor

Management system

the growth of the forests, and the entire company will work together to

Shizuoka Future Forest Supporter Tree
Planting Activities

nurture the local forests.

The General Aﬀairs Division takes the lead in promoting these activities.
Although events in the region did not fully resume in FY2022 due to the Corona disaster, CATALER continues
to interact with the community through social contribution activities in the form of "Execution-oriented support"
by providing supplies and participating in community activities.

Kakegawa City x CATALER Comprehensive Collaboration Agreement for "Collaborative
Community Development
Since 2015,Kakegawa City and CATALER have entered into a comprehensive
collaboration agreement with the aim of working together to promote

Activities

community revitalization, improvement of citizen services, and appropriate

Community revitalization

community and local revitalization, and contribute to the further development

responses to local issues. We will promote the creation of an attractive
and enhancement of both Kakegawa City and CATALER.

Aiming to realize a society in which local people can live prosperous lives, we will enhance our activities
across a wide range of ﬁelds, including activities to support community revitalization and disaster prevention
measures.
Sponsorship of Shizuoka Prefecture Softball Tournament for School Children
In promoting our business, we are committed to "contributing to the development of the community" and"gaining the trust of local people" as our management philosophy, and we will support the realization of the
dreams of young people, who are the future, and the growth of children. In 2020, we decided to be a special
sponsor of the " CATALER Tournament Shizuoka Prefecture Softballwaste, and other issues seriously and contributes to the preservation of the local environment.
The Adapt Road Program (continued from 2012)
The Adapt Road Program is a beautiﬁcation activity in which local
governments work together to create clean streets and a clean city.
150 north of our head oﬃce.

postponement due to the spread of COVID-19 infection, the ﬁrst

The Adapt Road Program

tournament was held in 2022 and will be continued thereafter.

Kakegawa City Shiosai no Mori Tree Growing Festival

Through the tournament, we hope that the players will cherish the

We are promoting the creation of a Forest of Hope in collaboration

environment in which they can play baseball, the gratitude to thosefriends, and that they will grow up to be great players.

As a company whose business itself contributes to the global environment, CATALER takes global warming,

Every month, we volunteer to weed and pick up trash along RouteChampionship for School Children," and after two years of

involved, and the joy of being able to play baseball with their

Environmental conservation activities

School children's baseballwith the local community. In 2022, we participated in the Kakegawa
City Shiosai no Mori Tree Growing Festival (held on October 22 ) .

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CATALER's
Sustainability

Supporting athletes
In recent years, as the nature of sports and the activities of athletes have diversiﬁed along with social
development, CATALER, as part of its social contribution activities, has been supporting athletes from theprefecture who are active around the world from various angles based on the idea that "supporting athletes
leads to the development of the community." For example, we provide ﬁnancial assistance for overseas
expeditions and training, negotiate representation for media appearances (TV, newspaper, web media interviews,etc.), support during event appearances, and assist in obtaining sponsors.
CATALER, with the cooperation of its supporters, will not only promote the Games, but will also actively engage
in communication activities with local residents to nurture the next generation and expand its circle of social
contribution.

Society

Environment

Governance

ESG data

Policy type

Global Initiatives
Under the sustainability policy, our production sites and oﬃces around the world are promoting social
contribution activities while taking their local circumstances into consideration. Our main activities areenvironmental preservation, community beautiﬁcation, welfare, educational support, and donations.
As a representative activity in FY2022, employees in Thailand participated in the "Mangrove Planting Project to
Plant 1,500 Trees" to restore mangrove forests, which play a role in reducing global warming, with residents ofcoastal communities. In South Africa, the program provides learning materials to schools and supports the costof instruction to teachers to improve the English language skills of elementary school students in ruralcommunities in the local KwaZulu-Natal province. In the U.S., we are committed to contributing to our local
communities through fundraising activities, donating approximately $4,000. In India, a portion of the proceeds isdonated to local villages to help build school buildings and latrines, install sanitation equipment, provide
learning materials, and distribute uniforms. In Indonesia, we are contributing to the revitalization of the local
community by deepening cooperation with the local community through the installation of water treatment plants
for drinking water and the planting of seedlings. In addition, to address the problem of dengue fevertransmission, we are releasing ﬁsh that feed on larval bowheads in order to eliminate the mosquitoes that carrydengue fever.

Tsubaki Miki (Alpine snowboarding)

In February 2023, at the young age of 19, she won the ﬁrst Japanese gold medal
in women's parallel slalom at the World Championships. In May of the same year,
she received the SNOW AWARD 2023 MVP award, given to the most successful
Japanese ski and snowboard athlete.
*By mutual agreement, the contract was terminated at the end of August 2023.

CTC (Thailand)
Mangrove Plantation Project

CNA (U.S.A.)

CSA (South Africa)

Relay for life

Rally to Read

Takumi Moriya (Windsurﬁng Freestyle)
In 2019, he became the youngest person ever to earn a professional certiﬁcate
at age 13. In August of the same year, he won the Professional Windsurfers
Association (PWA) Freestyle U15 Class World Champion. Since the 2021-2022
season, he has been ranked No. 1 in the JWA Professional Annual Ranking fortwo consecutive years, and in the 2023-2024 season, he went undefeated in

CIN (India)
Donation Activities

CIC (Indonesia)
Release of ﬁsh against dengue fever

Japan (as of November ) and was clinched the No. 1 ranking for the third
consecutive year. In 2023, he participated in two World Cup matches for the ﬁrst
time in his career. In October of the same year, he became the PWA Freestyle
U20 Class World Champion, and is attracting attention as the face of windsurﬁng.

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Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

GovernanceCorporate governance

34

Compliance

35

Risk management

41

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CATALER's
Sustainability

Introduction of
CATALER products

Top message

Environment

Society

Governance

ESG data

Policy type

Corporate governance
Basic concept

Status of activities

Corporate governance, which is the structure and system of control and monitoring, is important for sound and

The Board of Directors' meetings are held in accordance with the Companies Act and the Company's Board ofeﬃcient corporate organizational management. CATALER ensures proper corporate governance by establishing a

Directors Regulations to supervise the directors' performance of their duties. In ﬁscal year 2022, a total of nine

General Meeting of Shareholders, Board of Directors, corporate auditors, and accounting auditors.

meetings of the Board of Directors were held.
To ensure the eﬀectiveness of their audits, full-time corporate auditors attend not only meetings of the Board

Organization chartof Directors but also key internal meetings such as the Management Committee.

General meeting of shareholders
Appointment and dismissal

Internal controls

Appointment and dismissal

Decision-making function
Audit

Accounting auditor(Financial) Audit

ReportMember of the board
Decision-making and supervision of business execution

C-ICS(Cataler-Internal Control System)
As C-ICS (CATALER-Internal Control System) , CATALER strives to develop and properly operate a system toensure the appropriateness of business operations as a corporate group, based on "CATALER's Basic Approach toInternal Control". In addition, every ﬁscal year, the Internal Control Committee inspects the status of thedevelopment and operation of internal control, and conﬁrms that the activities of the departments that implement

Cooperationinternal control are being carried out autonomously and strengthened as necessary.

AuditorSupervision

Operational and accounting audits

Appointment •Supervision•dismissal

Basic approach to internal controls
CATALER places a high priority on sustainable success and continuous enhancement of customer value throughquality management. To achieve this, we believe that it is important to build good relationships with each of ourBusiness execution division
President and CEO Director
ReportReportReportInstruction

Management Meetings
ReportInternal audit function

Audit

continuing to provide products and services that impress our customers, and we are working to maintain andimprove internal controls from the following perspectives.

Instruction

Internal Control Committee
Cooperation

stakeholders, including shareholders, customers, business partners, local communities, and employees, while

Instruction

Functions and divisions

1) Based on the concept of respect for human beings, the Company shall establish a system that draws out the goodintentions, motivation, and autonomous judgment of the "people" who execute operations.
2) Aim to prevent the occurrence of problems by incorporating an internal control mechanism into the "business execution
process" (WISDOM , work procedures) by "people" and "organization" and by build-in quality with ownership.
3) Visualize the status of eﬀectiveness and eﬃciency of operations, reliability of ﬁnancial reporting, compliance with laws andregulations related to business activities, and risk management on a global basis, and implement a PDCA cycle forcontinuous improvement.

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CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Compliance
Basic concept

Management system

Based on the management philosophy of "complying with the spirit of domestic and foreign laws andIn order to strengthen the compliance system of the entire group, the Internal Control Committee serves as anregulations and practicing open and fair activities," we aim to be a company trusted by our stakeholders and areorganization for promoting compliance, checking the status of compliance and monitoring the progress ofengaged in compliance activities by establishing a system to prevent problems from occurring and to detect andmeasures related to compliance.

deal with problems immediately after they occur, and by fostering compliance awareness as the two pillars of

Guidelines for action

our activities.

From the Compliance Oﬃcer

CATALER's "Management Philosophy" deﬁnes our philosophy of compliance, which is "to comply with domestic
and foreign laws and their spirit, and to practice open and fair corporate activities."

To meet stakeholders' expectations
Since its establishment in 1967, CATALER believes that it has built good
relationships with many people, including local residents and customers,by conducting its business activities in compliance with "the laws of Japanand abroad and their spirit," as stated in its management philosophy. On
the other hand, society's demands on companies are increasing day byday, and responses to safety, the environment, and human rights arehaving an impact on corporate reputation. We have been striving tomaintain and develop sound relationships with our stakeholders throughour "CSR Policy," which is based on our management philosophy. However,in response to the changing times, we have newly revised the policy as our"Sustainability Policy". From now on, based on the new policy, the entire
CATALER GROUP will work to meet expectations through communication
with our stakeholders.
We believe that a company is a living organism. We must constantly
strive to improve our corporate strength (improvement of organizational
capability) so that we can respond appropriately to external stimuli suchas changes in the environment. CATALER has a domestic production
headquarters and R&D center, as well as seven overseas production
sites, and we recognize the need for governance as a global CATALER inorder to make further progress in the future. In recent years, the Internal
Control Committee has accelerated the C-ICS (CATALER-Internal Control
System) initiative, and we will continue to evolve our corporate governancestructure by enhancing our internal audit organization and further
promoting risk management. In the past, we have overcome diﬃcult
situations such as the Lehman Shock and the Corona disaster by drawing
on the wisdom and support of our stakeholders. We will leverage theseexperiences to improve our corporate governance system and achievesustainable growth.

In order to realize our Management Philosophy, we have established "Guidelines for action", which speciﬁcallyoutlines the actions and attitudes required of those who work at our company.

Chapter 1. With People
Harmonious, Safe and Lively Work Environment＜Our Concept＞▶Cataler respects every team memberʼ s diversity and works to create an environment of trust, respect and dignity where
members can fully and actively be engaged in their work at Cataler.
▶Cataler strives to create a safe and harmonious work environment that is free from discrimination and harassment for ourteam member.
▶Cataler complies with the labor and employment laws and regulations in eﬀect where we do business, and provides
decent working conditions to all Cataler team members.
Executive Managing Oﬃcer,
Member of the Board

Yukiyasu Saeki▶Work with integrity and make our best eﬀort by using all of our capabilities.
▶Listen to everyoneʼ s ideas, so team members can consider and beneﬁt from thoughts and opinions that are diﬀerent.
▶Never engage in harassment or discrimination.
▶Promote diversity to solve problems and innovate.
▶Follow safe practices and procedures and abide by regulations.
▶Report immediately injuries or illnesses that could impact workplace safety and help prevent unsafe conditions fromhappening again.

Human Rights＜Our Concept＞▶Cataler respects the human rights of our team members, customers and all people involved in our business activities.

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Sustainability

Environment▶Respect the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights,
and follow Catalerʼ s Global Human Rights Policy.
▶Comply with international human rights obligations, applicable laws and regulations and Catalerʼ s local rules and policies
about wages, beneﬁts and terms of employment, as well as prohibitions against child, forced or bonded labor.
▶Screen potential business partners using appropriate risk-based due diligence processes to identify, prevent and mitigate
negative human rights impacts.

Personal Information＜Our Concept＞▶Cataler complies with applicable laws and regulations when handling personal information by taking privacy consideration
into account in the development and operation of products and services.
▶By cooperating and coordinating on privacy issues across all business functions throughout the enterprise, Cataler works
to create and sustain an appropriate personal information management system.
▶Cataler promotes a corporate culture that respects privacy via continuous training and education.
▶Carefully and sincerely listen to and consider consumer feedback on privacy issues.
▶Use consumer personal information responsibly to develop products and services tailored to the consumer with a goal ofachieving consumer happiness and satisfaction.
▶Ensure that personal information is managed and processed throughout the enterprise in a manner that complies withapplicable laws and regulations.

Society

Governance

ESG data

Policy typeTraﬃc Safety Activities＜Our Concept＞▶Cataler works to raise awareness of traﬃc safety in society as a whole and to promote safety measures.
▶Comply with traﬃc rules, strive for good driving that serves as a model for others and advocate for traﬃc safety.

Philanthropy and Community Relations＜Our Concept＞▶Cataler aims to be the “best-in-town” where we operate our business activities.
▶Catalerʼ s philanthropy and giving focuses on the local community. Cataler contributes to the resolution of social andregional issues as a good corporate citizen.
▶Toyota engages in disaster prevention activities and contributes to the recovery of local communities in the event of anatural disaster.
▶Actively take part in philanthropic initiatives, such as volunteer activities.
▶Comply with the local Donations and Sponsorships policy and applicable laws and regulations when making charitable
contributions.
▶Do not oﬀer charitable contributions to improperly secure a business advantage for Cataler.

Government Relations and Political Activities

Chapter 2. With Society＜Our Concept＞

Environment▶Toyotaʼ s relationships with political parties or administrative bodies (government agencies and oﬃcials) are also fair and＜Our Concept＞▶Cataler is dedicated to providing clean and safe products.
▶Cataler proactively seeks strong environmental performance.
▶Cataler works toward a better understanding of environmental impacts at all life-cycle stages of our products.
▶Cataler continues to promote environmental initiatives in our business activities in cooperation with our suppliers and otherbusiness partners.

▶Cataler maintains proper and transparent relations with the government.
transparent, and we comply with applicable laws and regulations.
▶Maintain healthy and transparent relationships with political and administrative bodies and government oﬃcials.
▶Comply with the local Donations and Sponsorships policy and applicable laws and regulations when making politicalcontributions, which must not be oﬀered or accepted to inﬂuence a decision impacting Cataler or to otherwise improperly
secure a business advantage.

Corporate Communication Activities▶Comply with international environmental standards and take positive actions to address the local communityʼ senvironmental concerns.
▶Anticipate and evaluate impacts on the environment and avoid or reduce known risks.

＜Our Concept＞▶Cataler endeavors to build positive relationships with stakeholders by communicating accurate, timely and appropriate
information openly and fairly.
▶Cataler listens to and respects our stakeholdersʼ criticisms and suggestions.
▶Cataler is respectful and thoughtful in all of our communications activities to prevent harm to people or to Catalerʼ s
reputation.

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Sustainability

Environment▶Understand the importance of our brand communications and ensure that accurate information is communicated.
▶Do not make public statements on Toyotaʼ s behalf or provide comments to the press unless authorized to do so. Refer any
external inquiries, including inquiries from the press, to company authorized messengers.
▶Make clear that any opinions expressed using social media (including personal accounts) are your own ̶ and not those of
Cataler.
▶Maintain high standards of ethics and courtesy both inside the company and outside the company, including in our online
exchanges.
▶Keep conﬁdential information about Cataler, team members, customers and business partners secure and out of public view.

Chapter 3. With Integrity
Product Safety and Quality＜Our Concept＞▶Cataler places product safety at the top of our list of values.
▶Cataler endeavors to engage in research and development, design, production, quality control and after-sales services toSociety

Governance

ESG data

Policy type

Procurement Activities＜Our Concept＞▶Cataler aims for mutual growth based on mutual trust with the suppliers.
▶Cataler promotes localization by procuring local parts and materials.
▶Cataler selects suppliers based on fair and reasonable criteria.
▶Deal fairly and honestly with all suppliers, regardless of the value of the transaction or the length of the relationship.
▶Conduct appropriate due diligence and select suppliers who meet the following criteria:
・ Committed to respecting human rights and responsible sourcing practices.
・ Mindful of Catalerʼ s commitment to ethical business practices and diversity.
・ Able to satisfy our objective criteria including quality, price, reliability, technical excellence and delivery.
▶Avoid conﬂicts of interest, or the appearance of them, which could raise a question about our ability to exercise
independent judgment.
▶Accept from business partners only gifts and hospitality that are appropriate and reasonable in value and comply with local
rules and polices.

deliver our customers safe, high-quality products.

Sales Activities and Fair Competition▶Ensure productsʼ safety and quality to meet customersʼ expectations.
▶Follow applicable laws and regulations and Catalerʼ s standards and procedures that are designed to ensure productsafety and quality.
▶Report and promptly address any concerns about product safety or quality.

Research and Development Activities＜Our Concept＞▶Cataler develops products and services that meet the needs of our customers, and provides them through fair competition
and responsible marketing.
▶Cataler endeavors to build relationships with business partners based on mutual trust, and toward a goal of mutual growth.
▶Maintain a customer-ﬁrst mindset.

＜Our Concept＞▶Market our products in a manner that is truthful and not misleading.

▶Cataler provides safe and high quality products and services.

▶Ensure that every claim in our advertisements and marketing materials is adequately substantiated as required by law.

▶Cataler strongly promotes research and development of advanced technologies.

▶Do not discuss or make agreements with competitors about pricing, costs, bids, markets, territories, customers, suppliers or▶Cataler does not tolerate research and development that violates any applicable laws or regulations, or breaches

contract terms and conditions.

agreements with research and development partners. Cataler also does not tolerate the illegal or unauthorized use ofanother partyʼ s intellectual property or conﬁdential information.
▶Develop s from products customersʼ perspective and promote research and development.
▶Use our best eﬀorts to build a relationship of mutual trust.
▶Respect the intellectual property rights of others at all times, including when conducting research and development andduring production.

International Business Activities＜Our Concept＞▶Cataler complies with applicable laws and regulations that apply to our international operations, and we respect theculture, customs and history of local societies.
▶Toyota promotes our business activities, contributing to the development of local economies and society, and aims to be
the “best-in-town” company in each region.

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CATALER's
Sustainability

Environment▶Respect the culture, customs and history of each country and region.
▶Comply with applicable national, regional and international laws and regulations, including those that govern international
trade (exports and imports) and applicable restrictions on conducting business with certain groups, individuals or
countries.
▶Conﬁrm the scope of applicable sanctions and export controls requirements, and comply with local rules and policies.
▶Maintain accurate and complete records related to trade compliance activities, including classiﬁcations, values and countryof origin.

Accurate Record Keeping＜Our Concept＞▶Cataler creates and maintains business records with accuracy and integrity.
▶Cataler makes accurate, timely and fair disclosure of our ﬁnancial condition.
▶Cataler pays appropriate taxes.
▶Record all assets, liabilities, revenues and expenses completely, accurately, in the proper period, in the proper account andin a timely manner.

Society

Governance

ESG data

Policy type

Insider Training＜Our Concept＞▶Cataler possesses material nonpublic information, and we safeguard that information from improper disclosure or use.
▶Cataler does not engage in insider trading or tolerate insider trading by team members.
▶Keep material nonpublic information secure.
▶Within the company, share material nonpublic information only with those who need to know.
▶Never disclose material nonpublic information to anyone outside the company, including family members, friends and social
media communities.
▶Do not use information to buy or sell securities before that information has been released to the public, and the period set
by the companyʼ s local rules and policies has passed for investors to evaluate it.

Chapter 4. Fairness
Anti-Bribery and Anti- corruption＜Our Concept＞▶Operate more eﬃciently, reduce our risk, comply with regulations and make responsible business decisions by keeping▶Cataler will never oﬀer, pay, solicit or receive a bribe.

complete and accurate records.

▶Toyota does not make facilitation payments.
〈Deﬁnitions〉

Asset Protection and Conﬁdentiality

Anything of value in any form that is oﬀered or given to improperly inﬂuence the actions of a government oﬃcial or to＜Our Concept＞

Payments to induce a government oﬃcial to perform a routine, nondiscretionary task that the company is already entitled to.

▶Cataler appropriately protects both physical assets, such as facilities and equipment, and intangible assets, such as
intellectual property and conﬁdential information.
▶Cataler manages and protects conﬁdential information and uses such information in an appropriate manner.
▶Cataler is committed to continuously improving our security systems, including our systems for managing and responding todata security breaches or other information leaks.
▶Secure company property and preserve our reputation by handling all our funds and assets honestly and responsibly inaccordance with local rules and policies.
▶Recognize that computers, phones and other electronic devices issued to us by Cataler are Catalerʼ s property, and we use
those devices with that ownership in mind.
▶Ensure that Toyotaʼ s assets are not damaged, abused, wasted, lost or stolen, and report any misuse of assets.
▶Take reasonable steps to secure the companyʼ s assets from external attacks and guard against risks to the companyʼ s
conﬁdential information, IT systems and plant facilities.
▶Always keep security in mind when handling technology, information, IT systems and when navigating the internet.
▶Build and maintain the companyʼ s security culture through continuous training and education.

improperly obtain a business advantage from anyone, even if oﬀered or given indirectly.
▶Do not oﬀer, pay, solicit or receive bribes.
▶Do not make facilitation payments.
▶Know who we are dealing with and whether they are a government oﬃcial, and interact with them in accordance withapplicable laws and local or regional regulations.
▶Comply with the local Gifts and Hospitality policy, the local Donations and Sponsorships policy and applicable laws andregulations when oﬀering or receiving gifts, hospitality, donations or any political or charitable contributions.
▶Comply with the local Human Resources hiring practices and any applicable regulations and local rules and policies before
hiring any candidate referred by a government oﬃcial or who recently worked for a government entity.
▶Know our business partners by ensuring they are screened according to applicable risk-based due diligence processes.
▶Maintain accurate books, records and accounts that fairly reﬂect all transactions.

Gifts and Hospitality＜Our Concept＞▶Cataler acts with integrity in our interactions with third parties, and builds strong business relationships for the long term.
▶Cataler provides only appropriate gifts and hospitality within reasonable amounts for a legitimate business purpose.

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CATALER's
Sustainability

Environment▶Comply with the local Gifts and Hospitality policy and applicable laws and regulations when oﬀering or receiving gifts andhospitality, which must not be oﬀered or accepted to inﬂuence a decision impacting Cataler or to otherwise improperly
secure a business advantage.
▶Oﬀer gifts or hospitality that are reasonable in value and only for a legitimate business purpose, and accurately record all
related expenses.
▶Do not request gifts or hospitality from anyone doing business with Cataler.

Society

Governance

ESG data

Policy type

Speak Up
The Code covers Catalerʼ s policies and ways of thinking that we should keep in mind while working at Toyota. Wheneveryouʼ re not sure about the right action to take, or you ﬁnd known or suspected misconduct, please consult with yoursupervisor or companyʼ s internal resources. You can also raise questions or concerns by contacting external Speak Up
Lines.
When asking a question or raising a concern, you do not need to have all the details or be certain that wrongdoing has

Anti-Money Laundering

occurred.

＜Our Concept＞

Cataler takes violations of the Code seriously, and reviews questions and concerns in a fair and consistent manner.

▶Cataler conducts business with reputable customers and business partners, and complies with applicable anti-money

It is important to raise the issue so the company can address it in a timely manner.
If the results of an investigation warrant further action. Cataler will work to prevent similar problems from happening again.

laundering laws and regulations.
▶Cataler prohibits any money-laundering activity.
〈Deﬁnition〉
Money laundering occurs when funds or other assets that originate from criminal oﬀenses are circulated through the legal

Non-retaliation commitment

economy to make their source look legitimate.

Cataler prohibits retaliation against team members for reporting concerns in good faith or for participating in an investigation.

▶Check the identity of customers, suppliers and other business partners using due diligence processes in place at yourteam members is grounds for discipline.

location.
▶Stay alert for signs of potential money laundering, which may include attempts to make large payments in cash, requests tomake an overpayment or requests for refunds to accounts diﬀerent from the ones that issued the payments.

Any retaliation including dismissal, demotion or other similar employment actions, whether direct or indirect, against such
Any attempt to learn the identity of a team member who reported a concern is considered retaliation, and is also grounds fordiscipline.
Any such retaliation should be immediately reported using the above Speak Up resources.

▶Report any suspicious transaction to the company in a timely manner so that the company can take appropriate measures.

Conﬂicts of Interest＜Our Concept＞▶Cataler does not tolerate any conﬂicts of interest by our team members when they are engaged in Catalerʼ s business.
▶Act with integrity.
▶Do what is best for Catalerʼ s business.

Speak-Up resources
There are several ways to speak up.
Supervisors: Contact your team leader or supervisor, or supervisors from another division.
Internal Resources: Contact the human resources function, legal function or other related divisions for help.
External Speak Up Line: Contact the Speak Up Line. You can ask questions or report anonymously.

▶Avoid conﬂicts of interest, which occur when personal interests interfere, or appear to interfere, with the best interests ofCataler, like the following:・ Improperly supervising or assisting in hiring of a family member, romantic partner or close friend.
・ Competing with Cataler.
・ Using Cataler property, information or position for personal gain.
・ Having a substantial investment in a company doing business with Cataler.
・ Overseeing the relationship with a third party in which a family member, romantic partner or close friend is the key
decision maker.
・ Receiving a gift from a third party while negotiating a contractual relationship on Catalerʼ s behalf.
▶Disclose to the company any situation, transaction or relationship that may give rise to an actual, apparent or potential
conﬂict of interest.

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Introduction of
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CATALER's
Sustainability

Environment

Dissemination of action guidelines
In order to ensure that all employees are thoroughly familiar with the "Code of Conduct," we distribute the"Code of Conduct and Ethics Handbook," a booklet containing the "Code of Conduct" and its explanations, to allof CATALER's employees, including directors and employees.
In addition to the "Action Guidelines," the "Ethics in Conduct Handbook" contains"Ethics in Conduct Q&A" that shows how to judge and act based on the "Action
Guidelines" in speciﬁc situations.
Furthermore, during the company's CSR month (October every year) , weconduct a check test on the "Ethics in Conduct Handbook" to ensure that thecontents of the handbook are well understood by all employees.

Internal reporting system
In order to promptly collect information on compliance violations and take countermeasures, we haveestablished and are operating a global whistle-blowing system in addition to systems at each of our domestic
and overseas oﬃces. Among the cases reported, those involving serious compliance violations and those
involving the Awards and Disciplinary Committee are reported to the Internal Control Committee.

Society

Governance

ESG data

Policy typeAnti-corruption initiatives
In order to realize fair and transparent transactions, we have established "Basic Anti-bribery Rules" and"Guidelines on Anti-bribery" as part of our eﬀorts to prevent bribery of public oﬃcials.
In addition to the above, we have introduced training for directors and employees, prior approval procedures
when coming into contact with public oﬃcials in the course of their duties, and prior screening procedures forbusiness partners involved with public oﬃcials.

Compliance with competition and antitrust laws
In order to realize fair and free transactions, we have established "Regulations for Prevention of Violation ofCompetition Laws" and "Guidelines for Compliance with Competition Laws" as part of our eﬀorts to comply withdomestic and foreign competition laws.
In addition to the above, we have introduced training for directors and employees, as well as prior approval
procedures and post-approval reporting procedures when contacting other companies in the same industry.

Compliance with export-related laws and regulations

Taking the opportunity of the revision of the Whistleblower Protection Act in June 2022, we have strengthened

CATALER has established export control regulations and is working to ensure strict compliance with thethe secretariat function and established a system to respond to problems more promptly. 11 cases of reporting

Foreign Exchange and Foreign Trade Law and other control laws and regulations. We have established a systemand consultation were received in FY2022 (including overseas), but none of them had a serious impact on our

to obtain permission from the Ministry of Economy, Trade and Industry (METI) for all products to be exported

business operations.

that require such permission. In addition, we have established an "Export Trade Control Committee" composed of

We have also initiated new measures to prevent harassment, such as Multi Feedback (multifaceted evaluationsof managers and supervisors by colleagues and subordinates) .
[Reporting system](1) In-house consultation service• In-house consultation service by Personnel Division• Consultation service by Labor Union• Full-time Corporate Auditor

our executives, which regularly checks the status of compliance with laws and regulations. We ensure that all
employees are well informed through annual in-house training, and there were no violations of laws andregulations in FY2022.
In addition, to ensure that applicable items exported to CATALER GROUP's overseas bases with permission are
not diverted to weapons of mass destruction, etc. without permission, we have established a management
system at our overseas bases and conduct periodic physical inspections to conﬁrm that such items have notbeen diverted.

(2) External consultation service• Partner law ﬁrms
• All Toyota Speak Up Line(3) Global whistleblower system• Partner with management companies to establish and operate systems* Other eﬀorts are made to create an atmosphere in the company where employees can easily ask for advice,
such as through the implementation of assertion training and consultation with public health nurses.

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Introduction of
CATALER products

CATALER's
Sustainability

Environment

GovernanceSociety

ESG data

Policy type

Risk management
Basic concept
In recent years, social and environmental issues such as climate change, resource depletion, large-scaledisasters, epidemics of infectious diseases, and price hikes due to shortages of materials for semiconductors andother products have become a major inﬂuence on corporate management, requiring companies to identify andappropriately address risks that may impede their sustainable growth.

ISO22301 certiﬁcation status
CATALER GROUP

ISO22301

CAC

CCC

CTC

(Head oﬃce)(China)(Thailand)

2014

2021

2017

CSA

CNA

CIC

2020

—

2019

(South Africa) (North America) (Indonesia)

CIN

CEC

(India)(Czech Republic)——

CATALER is working to enhance and strengthen risk management in order to properly identify increasingly
diverse and complex risks, prevent risks before they occur, and minimize damage when they do occur.
Speciﬁcally, each division within the company implements various measures to reduce and avoid risks, andimplements daily management, as well as providing education to employees. In the unlikely event that a risk
does materialize, we will respond promptly and appropriately under the direction of top management.
In recent years, we have been implementing "BCM (Business Continuity Management) for Infectious Diseases"
to ensure business continuity against the spread of a new coronavirus infection, and we have been promoting
company-wide initiatives to address the "risk of cyber-attacks" and "privacy protection" as important risks.

Basic guidelines for business continuity
CATALER's activities are guided by four basic guidelines: "human life ﬁrst," "community," "responsibility tosupply," and "prevention of weathering".
1. Prioritize human life and safety*1 ISO 22301 International standard for business continuity management system (BCMS)
It provides a comprehensive framework for eﬃcient and eﬀective countermeasures against natural disasters such as earthquakes, ﬂoods, and typhoons, as well as potential threats tobusiness continuity such as system trouble, infectious disease outbreaks, power outages, and ﬁres.

Promotion structure
During normal times, each BCM organization systematically conducts activities such as organization-speciﬁctraining and education ( Plan/Do), including risk reduction activities for damage assumed in the event of anincident (major earthquake, ﬁre, explosion, typhoon, torrential rain, infectious disease, cyber attack, etc.) anddisaster response training, and undergoes internal and external audits (Check), overall activities are reviewed by
top management at BCM promotion meeting. The PDCA cycle is used to reﬂect the ﬁndings and recommendations
in each organization's activity plan for the next ﬁscal year ( Action). Once an incident is detected, a Restoration
HeadQuarters (RFQ) is established as an emergency response headquarters, and after conﬁrming the damage,an incident assessment meeting is held. This is where we determine if BCP implementation is necessary. If the
BCP is activated, each BCM organization starts recovery activities based on the business continuity plan.

Prioritize the lives and safety of employees, their families, and related parties.
2. Contribution to local communities
Strengthen cooperation with local communities, and actively contribute to local communities.
3. Provide a reliable, continuous supply to customers
4. Continuously improve the business continuity management system (BCMS)*1
Regularly evaluate changes in the business environment and training results to improve the business continuity plan.
*1 Business Continuity Management System (BCMS)
A management system for protecting businesses from various threats and realizing early recovery and resumption.

Business continuity management (C-BCM)

Internal
andexternal audits

Strive to maintain and improve the business continuity system to ensure a stable supply to customers.

Normal times

Emergency

President

RHQ
Top management by President and
BCM General Manager

BCM General Manager
BCM organizer
BCM promotion meeting
General Manager
or above

Incident-determinationcommittee
BCM General Manager
Chief of Corporate Management Function
GM of Safety and Environment Division
Nominated required members

BCP activation

CATALER has established and operates its own business continuity management system, C-BCM (CATALER Business Continuity Management), to prepare for various threats such as earthquakes and tsunamis. We continue
our business continuity eﬀorts by establishing a system that allows us to continue contributing to local
communities and supplying products to our customers, while placing the highest priority on human life andsafety.

BCM organizations
Risk reduction activities
Education and training

BCM organizations
Execution of BCP

In 2014, we obtained ISO 22301*1 certiﬁcation. Currently, we are working toward certiﬁcation at all CATALER
Group locations.

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Introduction of
CATALER products

CATALER's
Sustainability

Environment

Preparing for Natural Disasters

GovernanceSociety

ESG data

Policy typeResearch and development center, disaster mitigation eﬀorts

Organization of activities

CATALER has eight production sites in Japan and abroad, but research and development sites are located only

A system is in place to quickly conﬁrm safety and resume product supply. Immediately after a disaster strikes,

in Japan. Therefore, as a risk hedge in the event of a major natural disaster, in November 2017 we built our

the initial response organization is activated to save lives and support employees. The day after safety is

research and development center, the CATALER ARC Creation Centre, in an area with low disaster risk.

conﬁrmed, the factory recovery organization, product supply organization, and recovery supply organization

In addition, the facility's research building (4 stories) has a seismic isolation structure that is highly eﬀective inwork together to resume production and proceed with production at overseas sites.

reducing shaking and the risk of secondary disasters.

As of 2022, it is organized as follows[Head oﬃce] Initial response organization, factory recovery organization, product supply organization

Testing building (4F)

[ARK: Research and Development Center] Initial response organization, recovery supply organization

Earthquake resistant (5,500 m )Laboratory building (partly 2F)

Research building (4F)
2

Seismic isolation (14,400 m )2Earthquake resistant (4,800 m2)

Speciﬁc initiatives
We are taking both hardware and software measures to prepare for natural disasters that may occur at any
time.
On the hardware side, in addition to conventional measures to reinforce buildings and facilities against
earthquakes, prevent falling objects, and prevent leakage of hazardous materials from tanks, CATALER installed
its own breakwaters and sluice gates in 2014. We also stockpile food for when it is diﬃcult to return home.

Breakwaters for tsunami protection

Sluice gates for tsunami countermeasures

Falling object countermeasure, wiring rack anti-sway

Chemical leakage countermeasures, emergency shutoﬀ valve
anchor installation

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CATALER's
Sustainability

Environment

On the software side, we conduct various types of education and training for all employees and accumulatedisaster simulations. In doing so, we identify operations that should be continued even in the event of a headoﬃce malfunction and conﬁrm emergency response procedures.

GovernanceSociety

ESG data

Policy type

Safety conﬁrmation system
In the event of a large-scale disaster or incident in Japan, we have introduced a "safety conﬁrmation system"that allows employees who work or live in the aﬀected area to report the safety of themselves and their families
to the company via PC or smartphone. To ensure that this system functions as a means of communication in the

Education
Implementation item

Contents

BCM basic training(Target: New recruits)

Training on BCM-related peacetime initiatives and contingency action
procedures

BCM Basic Education
Refresher Training( for all employees)

Education to reaﬃrm BCM activities and acquire new information

Month ofimplementation

April
October

event of an emergency, we regularly conduct response drills based on the assumption that a major earthquake
has struck, and are prepared to respond at any time.
Otherwise, in the event of a major typhoon or torrential rain, the system is utilized after the weather recovers tosurvey households for damage.
In addition, as a response to COVID-19, we are also eﬀectively using the system to survey employees to conﬁrm
their physical condition before the end of a long holiday weekend, thereby encouraging them to come to worksafely and securely.

Training
Safety conﬁrmation
training

Contents

Safety conﬁrmation/response training for all employees using the response
systemMonth ofimplementation

Seismic intensity

Practical drills for evacuation to tsunami evacuation sites, rescue, ﬁreﬁghting,and employee support by the initial response organization in the event of ahuge Nankai Trough earthquake, to ensure safety of human life and to prevent
secondary disasters.

June

Simulation training

Training to strengthen the response capabilities of each BCM organization in theevent of a disaster for the purpose of early restoration of business activities after
the disaster.

July,
August,SeptemberFire evacuation drill

Evacuation drills aimed at preventing secondary disasters from ﬁres

NovemberTraining on the use ofﬁre extinguishers

Training for all employees to learn how to use ﬁre extinguishers

Comprehensive
disaster prevention
drill

Safety information system

March

March

(1) Safety Conﬁrmation Emails Sent
Simultaneously

5 or higher(Send Automatically)

Report on safety status

System server

Security company

Employee

Implementation item

(2) Safety report(Send by each person)

Report on personal safety,
availability to work, etc.

Cooperation with and contribution to the community
In accordance with our basic business continuity guideline, "Contribution to the local community," wecontribute to the government's goal of creating a community with a high awareness of disaster prevention.
Speciﬁcally, we have prepared the evacuation routes and lighting for a tsunami evacuation site on high ground ina mountain forest adjacent to its Head oﬃce (30 m above sea level) available not only to employees but also to
local residents at all times. This was highly appreciated by the local government, and we became the ﬁrst
company in Kakegawa City to conclude a "Tsunami Evacuation Facility Agreement".

Comprehensive disaster prevention drill

Simulation training
Agreement on the use of tsunami evacuation facilities (March 2012)

Establishment of evacuation routes that can beused by local residents

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CATALER's
Sustainability

Environment

Information security
Basic concept

GovernanceSocietyIn the event of an information security incident,

ESG data

Policy typepromptly take appropriate measures to contain the incident,

restore the current situation, prevent damage from spreading and prevent recurrence of such incidents.
4. Training and awareness
Provide necessary training and awareness-raising activities for directors and

CATALER recognizes that all information related to its business activities is an important asset, and has

employees to improve theirawareness of information security.

established information security management rules and regulations to protect information assets and ensure thesafety and security of CATALER and its stakeholders through systematic and continuous improvements.

Basic stance on information security management rules
1. Compliance

Promotion structure
The Chief Information Security Oﬃcer (CISO) oversees information security for the entire company andsupervises security policies and processes.
The "Company-wide Promotion Division" consists of three division under the CISO: General Aﬀairs, Information

Comply with laws, national guidelines, contractual obligations, and other social norms related to information

Systems, and Technology Management. The department formulates and promotes speciﬁc measures, while

security

assigning "Information Security Managers" to each division within the company to conduct daily security

2. Maintenance of a stable management basemanagement.

Strive to maintain a stable management base by ensuring competitiveness and business continuity throughInformation security progress is reported regularly at company-wide meetings, and all division work together toappropriate management and protection of information assets.

protect information assets.

3. Provide safe products and services

The technical aspects are led by the "Information System Technical Manager" designated by the CISO, supported

Provide safe products and services to customers and society by implementing information security measures inby the Information System Department, and policies are determined through reports at company-wide system

our business activities, including the development, design, and manufacture of products and services.

meetings.

1. Clariﬁcation of responsibility
Establish a promotion system for information security to appropriately manage and protect information assets,
and clarify its duties and responsibilities.
2. Maintenance and compliance with information security regulations
Establish and adhere to rules and regulations regarding information security
3. Risk management
Identify information assets to be protected and information security threats to them

Information system
department

Technical management
department

Response

Principles of information security initiatives

Designation

General aﬀairs department

Instruction

as well as the establishment of a governance structure.

Company-wide promotion division

Every division in the company
Information Security Oﬃcer(General Manager of each division)

Information Security Promoter (Designee)
Employee

ReportCompany-wide
management meeting

Resolutions and reports on
basic information security
matters

Information Security
Technical Oﬃcer
Instruction

5. Information security management

Information system department
ReportContribute to the creation of a safe cyberspace so that users can enjoy its beneﬁts with peace of mind
Continuously promote and improve information security through risk management, including incident response,

Chief Information Security Oﬃcer (CISO)

In str uction

4. Contribution to the creation of a safe cyberspace

Company-wide system meeting
Resolutions and reports on
speciﬁc management
measures for information
systems and IT

Based on the identiﬁed threat preparedness and severity of threat impact, take measures to prevent theoccurrence of incidents that compromise the conﬁdentiality, integrity, or availability of information assets(information security incidents).

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Editorial policy

Introduction of
CATALER products

Top message

CATALER's
Sustainability

Environment

Initiatives

Society

Governance

ESG data

Policy type

Privacy policy

Initiatives at CATALER

CATALER has established internal rules for the protection of personal information and has built an internal• Enhancement of security based on security guidelines and upgrading through PDCA
• Compliance with cybersecurity guidelines of JAMA and other organizations• To ensure security measures based on regional and customer requirements• Implementation of security training for executives and employees(Basic education, position-speciﬁc training, security mail magazine, targeted attack e-mail response training,etc.)

management system to ensure the protection, management, and handling of personal information. The internal
regulations stipulate measures to be taken when personal information is acquired directly or indirectly, how it ishandled and managed within the company, and how to respond to inquiries from the individual concerned. These
regulations also comply with the Personal Information Protection Law, the My Number Law, and the EU General
Data Protection Regulation (GDPR) . As for the management system, the Chief of the General Manager of theGeneral Aﬀairs and Personnel Division is appointed as the Chief Privacy Oﬃcer, the General Manager of theGeneral Aﬀairs Division as the administrator, and the General Manager of the Personnel Division, etc., as the
person in charge of oﬃce handling.

Initiatives with Overseas Subsidiaries▶Click here for our basic policy regarding personal information.

CATALER is committed to enhancing information security in its global business operations , including its
overseas subsidiaries. Overseas subsidiaries conduct periodic self-inspections in accordance with security
guidelines and report the results to the Head oﬃce. The Head oﬃce will then provide guidance for improvement
and conﬁrm the progress of countermeasures during an annual on-site audit.

Basic concept
CATALER considers "intellectual property" as the result of research and development activities to be an(1) Security guideline deployment(2) Self-inspection measures

CATALER

Protection of intellectual property

Overseas subsidiaries(Japan Head oﬃce)

important management resource that supports growth and earnings to maximize corporate value, and in "IV.7.
Protection of Intellectual Property Rights" of the guidelines for action, it is stipulated that "Employees must
protect the intellectual property rights held by the company and respect the intellectual property of othercompanies". Therefore, we strive to secure strategic intellectual property that supports our own business and to(3) Report on
inspection results(4) Advice for improvement

maintain and manage the intellectual property we have acquired. At the same time, we conduct investigations as
appropriate to ensure that we do not infringe on the intellectual property of others, and take appropriate(5) Implementation of
improvements(6) On-site audit

In addition, the Head oﬃce immediately notiﬁes information on newly discovered security vulnerabilities tooverseas subsidiaries. Subsidiaries respond promptly and report the results of implementation to minimize global
security risks.This ensures uniform security policy enforcement and risk management worldwide.

Initiatives for supply chains
We believe that information security measures are important not only for our own company but also for our

measures to avoid or prevent infringement on the intellectual property of others.

Main initiatives• Strategies in intellectual property
We build a patent portfolio by analyzing the status of intellectual property in each R&D ﬁeld, reﬂecting it in our
R&D strategy, and protecting the resulting R&D results as intellectual property.
We also believe that securing a large number of strong patents is important to maintain our competitive
advantage, and we evaluate the value of the patents we hold and reﬂect this in our development and intellectual
property strategies.
• Employee development in handling intellectual property

suppliers, and we are promoting eﬀorts to comply with the cyber security guidelines of JAMA and otherTo ensure that each and every developer is able to maintain and manage his/her own intellectual property andorganizations. In addition, CATALER discloses its initiatives and measures to promote enhanced security

avoid or prevent infringement of intellectual property by others, we provide intellectual property education forthroughout the supply chain.

employees in the development division according to their job qualiﬁcations.

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CATALER's
Sustainability

Introduction of
CATALER products

Environment

Society

ESG data

Governance

Policy typeESG data

Environment
CO2
Waste

Environmental accident

Amount ofdischarge
Emissions
intensity

2017

2018

2019

2020

2021

2022

22

27

31

26

23

28

No. of people

19

31

37

16

24

40

One's own convenience No. of people

22

22

24

15

28

25

No. of people

6

4

10

2

4

11

％

22.7

25.9

19.4

30.8

21.7

28.6

No. of people

10

12

15

7

15

22

Male

％

2.2

5.1

11.8

4.5

16.7

30.8

Female

％

100

100

100

100

100

100

%

100

100

93

100

93

95.5

No. of people

2

1

0

1

0

1

No. of people

25

29

22

26

37

40

Number of
educational programs
Number of educational
competencies acquired

Cases

83

84

83

85

108

119

Cases

2,181

1,541

1,911

1,945

2,010

4,363

Fatal accident

Cases

0

0

0

0

0

0

Lost time accident

Cases

0

0

0

0

0

0

%

ー

57.0

63.0

79.0

81.0

80.0

%

ー

99.2

99.2

99.2

99.2

99.2

%

24.3

29.1

42.2

47.3

46.0

41.3

環境

Number of recruits (unit) New graduate recruits No. of people
Career recruits■ Period: Year "Jan-Dec" / ■ Fiscal year " Apr-Mar"

Number of employees
leaving or losing a job

2017

2018

2019

2020

2021

2022

Thousand t-CO₂/year

14.97

16.04

16.47

14.86

14.63

12.45

Thousand tons

0.32

0.29

0.29

0.27

0.20

0.24

t/thousand pieces
of product

0.045

0.044

0.039

0.040

0.029

0.038

Employees acquiring
childcare leave

cases

0

0

0

0

0

0

Acquisition rate ofchildcare leave

Retirement age
Percentage of new
graduates who are female

Return to work afterchildcare leave

Number of employees
taking nursing care leave

SocietyBy employment status

Employment of
persons withdisabilities
Average age (unit)
Average years of service(unit)

Aggregation period: the end of March at the end of each year
*1 : As of June 1

2017

2018

2019

2020

2021

2022

No. of people

2,123

2,254

2,473

2,447

2,470

2,513

Male

No. of people

780

805

858

876

872

910

FemaleNo. of people

191

198

198

207

211

214

Total

No. of people

971

1,003

1,056

1,083

1,083

1,124

Percentage offemales

%

19.6

19.7

18.8

19.1

19.5

19.0

Number offull-time employees

No. of people

791

827

871

893

900

938

Number ofcontract employees

No. of people

119

121

121

106

102

90

Number of
No. of people
temporary employees

61

55

64

84

81

96

Total

No. of people

971

1,003

1,056

1,083

1,083

1,124

Employer *1

No. of people

11

11

15

16

15

21

Number of employees(Group)Number of employees(non-consolidated)

Number of short-time workers

Employment
rate *1

%

1.76

1.73

2.27

2.27

2.13

2.54

years old

36.0

36.7

36.8

37.2

38.9

37.7

years

12.8

12.8

12.8

13.8

13.9

13.0

Training and education

Industrial accident

In-house gynecological checkup uptake rate
Percentage of respondents who possess
antibodies against measles
In-house inﬂuenza vaccination coverage

Governance

Period: Fiscal year "Apr-Mar".

Male
Member of the board Number of employees(part-time)

AuditorNumber of employees(part-time)

FemaleNumber of times held

No. of people

8（2）

0（0）

Meeting of memberof the board

No. of people

3（2）

0（0）

Auditors council

9
7

Cataler Sustainability Report 2023

46

Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Third-party veriﬁcation in the environmental ﬁeld

Cataler Sustainability Report 2023

47

Table of contents
Editorial policy

Top message

Introduction of
CATALER products

CATALER's
Sustainability

Environment

Society

Governance

ESG data

Policy type

Policy type
Policy List
Catego ry

Guidelines

P u b l ic at io n page

CATALER's

Sustainabilit y gu id e l in e s

P4

E nvi ro nment

Environm ental gu id e l in e s

P8

S oci ety

Quality guidel in e s

P 15

Procurem ent gu id e l in e s

P 18

Supplier Sust ain ab il it y G u id e l in e s

P 18・P 20

H um an rights gu id e l in e s

P 21

A ction plan base d o n t h e Ac t o n t h e

P 21

S us tai nabil i ty

Prom otion of Wo me n 's Ac t ive

Governance

Safety guidel in e s

P 26

A ction guide l in e s

P 35

Basic guideli n e s f o r b u sin e ss

P 41

continuity
Basic stance o n in f o r mat io n se c u r it y

P 44

m anagem ent r u l e s
Principles of in f o r mat io n se c u r it y

P 44

initiatives
Basic guideli n e s o n p e r so n al

P 45

inform ation

Cataler Sustainability Report 2023

48

Establishment: October 2013
Revision: November 2023

CATALER GROUP Sustainability Guidelines
We (CATALER CORPORATION and its subsidiaries), as a global company, will take theinitiative in contributing to the harmonious and sustainable development of society and theearth through all of our business activities in each country and region, based on our"Management Philosophy". For the sake of sustainable development, we will conduct ourmanagement with the focus on all stakeholders as described below, and strive to maintainand develop sound relationships with stakeholders through open and fair communication.
We hope that our business partners would support the purpose of this policy and act
accordingly.
(Compliance)■We will comply with domestic, overseas, and international laws/regulations/rules as wellas the spirit of them, and endeavor to conduct our business activities in an honest, sound,and fair manner with high ethical standards, while respecting the culture, customs, andhistory of each country and region.
■We will not engage in any violation of laws and regulations relating to competition laws,
bribery control laws, export control laws, intellectual property protection laws, data protection
laws including personal information, or any other related laws/regulations.
(Respect for Human Rights)
Based on international norms, such as the Universal Declaration of Human Rights and the
UNITED NATIONS GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS, we will
respect the human rights of all people involved in our business activities, and will not engage
in any form of forced labor, child labor, or any other labor that infringes on human rights or
any other similar conduct.
We will also strive to ensure that our business activities do not take part in any human rights
violations, including conflict mineral issues that may cause human rights problems.
(Thorough Risk Management)
We will always be aware of risks in preparation for terrorism, cyber-attacks, natural disasters,
and other diversified risks that may threaten the lives of citizens and corporate activities, andwill thoroughly manage risks from the perspectives of both minimizing damage and ensuringbusiness continuity.
(Relationship With Each Stakeholder)<Customers>
Based on our belief that "customers come first," we will develop and provide innovative, safe,and outstanding high-quality products and services that meet diverse expectations of ourcustomers to enrich the lives of people around the world.
<Employees>■We respect our employees and support their individual growth based on the belief that "thesuccess of our business activities is only achieved through excellent teamwork as well as
creativity of each and every one of our employees.”■We will provide equal employment opportunities and strive to ensure diversity and unity
among our employees.
We will also strive to enhance the abilities of our employees and realize workstyles thatenable diverse human resources to play active roles. We will provide working conditions andopportunities without discrimination based on gender, age, nationality, disability, sexual
orientation, or any other factor in all aspects of employment.
■We will comply with the laws and regulations of each country and region concerning basic
working conditions, such as working hours, holidays, and wages, and will work to maintainand improve a comfortable working environment that takes health and safety into
consideration.
■We will build and share the values of "mutual trust and mutual responsibility" throughsincere dialogues and consultations with our employees. We will work together to ensure
mutual prosperity for both employees and the company.
■We recognize the right of our employees to associate or not associate freely in accordancewith the laws and regulations of the countries in which we promote our business activities.
<Business Partners>■We respect our business partners and strive to achieve co-existence and co-prosperity
based on mutual trust from a long-term perspective.
■When deciding on business partners, we open our doors to all candidates, regardless ofthe nationality or size, and make decisions based on their overall strengths.
■We are committed to open, fair, free and appropriate trade, and to responsible procurement
practices to ensure that this policy is implemented not only within the CATALER Group but

also throughout our supply chain without fail.
<Shareholders>■We aim to enhance our corporate values through long-term and stable growth for the
benefit of our shareholders.
■We will make timely and appropriate disclosure of business and financial conditions andresults, as well as non-financial information, to our shareholders.
<Local and Global Communities>
・Environment
We will strive to protect the environment through all of our corporate activities, develop anddisseminate technologies that balance the environment and the economy, and work with awide range of stakeholders in society to achieve growth in harmony with the environment
through activities, such as prevention of global warming and preservation of biodiversity.
・Society■We will respect the culture, customs, history, and laws/regulations of each country andpractice management “with respect for humanity.”■We will constantly pursue superior technologies that are safe and clean and meet theneeds of society in order to realize sustainable mobility demanded by society.
・Participation in society and contribution to its development
We aim to coexist in harmony with society and contribute to the growth of communities anddevelopment of affluent society through participation, either independently or in cooperation
with partners, in all regions where we conduct business activities.
(Role of Top Management)
Top management will take the initiative in establishing effective governance to realize thespirit of this policy, and will ensure that all group companies are fully aware of the policy.
In the event that a violation of this policy occurs, top management will take the initiative inresolving the problem, investigating the cause, and preventing recurrence, and will fulfill its
responsibilities.
Masashi Ishida
President and CEO
CATALER CORPORATIONCATALER CORPORATION Human Rights Guidelines
We, CATALER CORPORATION (hereinafter referred to as "we" or "us"), support the UNITED
NATIONS GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS (hereinafterreferred to as the "UN Guiding Principles") and are committed to respecting human rights inaccordance with these principles. Based on our management philosophy of "Keep strict
observance of, and respect for, the language and spirit of all foreign and domestic laws andregulations, and engage in fair and open business practices," we promote our businessactivities with the aim of being the best company in town, which is loved and relied upon by
local residents, in each country and region where we conduct our business. The automotive
industry is supported by a great number of people, including local residents, suppliers, otherbusiness partners, and customers. We will continue to improve ourselves and protect thehuman rights of our customers and all people involved in our business activities so that we
can continue to be useful to everyone and be needed by society. These Guidelines are to beobserved by each and every one of us working at CATALER, and are positioned as thehighest guidelines for human rights in business activities by CATALER.

1. Commitment to Respect Human Rights
We understand that our business activities may potentially or actually impact human rights.
We will take utmost care not to infringe on the human rights of others, and we will have asense of ownership with regards to negative human rights impacts caused in the course of
our business activities. If our business partners or other related parties are involved innegative impacts on human rights, we will encourage them to respect and not violate humanrights in accordance with these Guidelines. We will learn from international norms, including
the Universal Declaration of Human Rights, and address issues related to human rights.
These Guidelines are based on the UN Guiding Principles and are designed to ensure that
CATALER respects internationally recognized human rights and thoroughly complies with theinternational human rights obligations of the countries in which we operate, as well as
relevant laws and regulations. In the unlikely event that a country's laws and regulations differ
from international human rights norms, we will follow the higher standard. In cases of any
conflict, we will seek ways to maximize respect for internationally recognized human rights.

2. Scope of Application
These Guidelines apply to all officers and employees of CATALER (CATALERCORPORATION and its consolidated subsidiaries). We also hope that all of our business
partners, including our suppliers, understand and support these Guidelines.

3. Human Rights Due Diligence
In order to fulfill our responsibility to respect human rights, we will establish a system of
human rights due diligence*, which we will implement on an ongoing basis. (*A process
implemented to identify, prevent, and mitigate negative human rights impacts)

4. Remediation and Redress
When it becomes clear that we have caused or contributed to negative impacts on humanrights, we will work to rectify such impacts through appropriate means, expand theconsultation services established in Japan and other regions, and develop effective redress
mechanisms.

5. Education
We will provide appropriate education and skill development to our officers and employees
to ensure that these Guidelines are disseminated both internally and externally, and we will
strive to promote understanding of these Guidelines among our suppliers and other business
partners. We will also reflect these Guidelines in relevant principles, guidelines, and othernecessary procedures to ensure that these Guidelines take root throughout our businessactivities.

6. Progress Check and Information Disclosure
We will continuously monitor our compliance with the Human Rights Guidelines and make
improvements as necessary. We will disclose information regarding our efforts and progressin disseminating the Human Rights Guidelines through CATALER’s official website and othermeans of communication, as appropriate.

7. Dialogues and Consultations with Stakeholders
We will consult with third-party organizations specializing in human rights regarding any
adverse impact on human rights, as well as engage in dialogues and consultation withinternal and external stakeholders. The Guidelines above were approved by theManagement Committee of CATALER CORPORATION on October 31, 2023.
November 1, 2023
Masashi Ishida
President and CEO
CATALER CORPORATIONSupplier Sustainability Guideline
November 2023
CATALER CORPORATION
Introduction
Since our founding, we at CATALER have been developing new environmental
technologies that purify the air using catalysts and working to solve environmental problems
on a global scale. Through these activities, we have provided people and environmentallyfriendly products to our customers and endeavored to contribute to the development ofsustainable future.
During this time, we have faced various difficulties due to changes in the social
environment, but we recognize the importance of having a firm philosophy; and we haveestablished the "CATALER Management Philosophy" and clarified our action guidelines.
In October 2013, we summarized the ideas expressed in the "CATALER Management
Philosophy" in terms of our relationships with stakeholders, and we have compiled them intothe "CATALER GROUP CSR Guideline" from the perspective of social responsibilities that
we should assume as a company.
In 2015, we prepared and announced the "CATALER CSR Guideline for Suppliers" toensure that we can continue our business based on mutual trust with our suppliers.
In December 2021, we prepared the "CATALER Sustainability Report,” which we regularly
update, to inform our stakeholders of our "contributions to sustainable society" and "future
direction" as well as our E (Environment), S (Society), and G (Governance) initiatives, which
we have been promoting since our establishment.
In response to the recent demand for more effective solutions to issues throughout supply
chains, such as efforts to achieve carbon neutrality and human rights and labor issues, wehave renamed the "CSR Guideline for Suppliers" to "Supplier Sustainability Guidelines" andrevised some of the content to reflect this change. We would like to take this opportunity toconfirm and agree with our suppliers once again regarding the efforts that we should promote.
We would like to ask our suppliers to understand the purpose of this guideline and put it
into practice yourself, and we would like to ask that you also request your suppliers tounderstand the purpose of this guideline and put it into practice as well.
Isao Uda
Division Chief
Purchasing & Production Control Function
CATALER CORPORATION

1. Compliance<Compliance with Laws, Regulations, and their Spirit>
We will comply with laws and regulations of each country and region, as well as theirspirit.
We will establish policies, systems, action guidelines, reporting systems, education, etc.

to ensure thorough compliance.
<Management and Protection of Confidential Information>
We will strictly manage our own confidential information, including trade secrets, and

use it appropriately.
We will obtain confidential information of other companies from legitimate sources by

legitimate methods, confirm the scope of use and other conditions, use the information
only within the scope of use, maintain confidentiality, and will not infringe on the rights
of other companies.
We will obtain personal information on employees, customers, business partners, etc.,

only by legitimate means, and shall strictly control, use, and protect the information
obtained to the appropriate extent.
<Protection of Intellectual Property>
We will protect our intellectual property rights and such from infringement by third parties

and will exercise caution.
We will not participate in unauthorized use of intellectual properties of third parties, suchas patents, utility models, designs, and trademarks, nor will we infringe on the intellectual
property rights through means such as making unauthorized copies of software or books.
<Compliance with Competition Laws>


We will not engage in any acts that violate the competition laws of respective countries,
such as private monopolization, unfair restriction of trade (cartels, bid rigging, etc.),
unfair trade practices, and abuse of a superior bargaining position.

<Export Trade Controls>In accordance with export trade control laws and regulations, we will thoroughly
control exported products, technologies, etc. by checking whether they are restricted
items or not, and preparing and providing certificates of applicability.

<Anti-corruption>

We will make political contributions, donations, etc. in accordance with the laws ofeach country, and strive to build transparent and fair relationships with political andadministrative authorities.



We will not provide entertainment, gifts, or money to customers, suppliers, or otherbusiness partners for the purpose of obtaining or maintaining undue profits or unfair
preferential treatment.



We will comply with domestic and international anti-bribery laws, and maintain honest
and fair relationships not only with political and administrative authorities but also withour business partners.



We will not engage in off-balance sheet transactions, fictitious transactions, or otherfalse or misleading transactions, and we will prepare and maintain accounting records(such as forms and books of account) that are reasonably detailed and accurate thatfairly reflect all transactions and dispositions of assets.

<Prohibition of Conflicts of Interests>

We will not engage in any conduct that unfairly benefits individuals, customers,
business partners, or third parties against our own interests (conflict of interest).

2. Human Rights and Labor<Respect for Human Rights>


We will understand internationally recognized human rights, including the Universal
Declaration of Human Rights, and will respect the human rights of all people involvedin our business activities.

<Immigrant and Forced Labor>

We will not tolerate any form of modern slavery, including forced labor or humantrafficking of any kind through violence, threats, debt, etc.



We will ensure without fail that all work is voluntary and that employees are free to leave
their jobs at any time.



We will not require employees to surrender passports, official identification documents,
or work permits as a condition of employment. We will not have our employees to bear
any cost, such as employment handling fee, that is deemed undue under international
norms.

<Child Labor and Young Workers>
We will not allow child labor that deprives children of educational opportunities andforces them to work at a young age that hinders their development.
The maximum age at which individuals may work shall be 15 years of age, the minimum

age for employment under the applicable laws and regulations of each country, or theage at which compulsory education ends, whichever is the highest.
Employees under 18 years of age shall be protected from hazardous work and working

conditions that are detrimental to their health, safety, morale, and development.
Vocational training and apprenticeships shall be allowed only to the extent permitted byapplicable laws and regulations in each country.
<Prohibition of Discrimination and Respect and Acceptance of Diversity>In all aspects of employment (application, hiring, promotion, compensation, right toeducation, assignments, wages, benefits, disciplinary actions, termination of
employment, retirement, etc.), there shall be no discrimination on any grounds
including gender, age, nationality, national origin, race, color, ethnicity, creed, religion,
sexual orientation, gender identity, disability, marital and child status.

<Harassment>

We will not tolerate any form of harassment, including power harassment, sexual
harassment, and peer pressure, or any conduct that offends personal dignity.



Any verbal, visual, or physical conduct directed at an employee that interferes withhis or her performance or dignity or creates an intimidating, hostile, or offensive work
environment, shall be considered harassment.



Any complaint of harassment will be immediately reported and investigated. We will
also ensure that employees are able to report any instance of harassment without
fear of retaliation, intimidation, or harassment.

<Wages and Benefits>

We will pay employees in compliance with applicable laws and regulations regarding
minimum wages, overtime, wage deductions, payments by result, and othercompensations.



We will provide legally required compensations.



Breakdowns of salaries, other compensations, welfare benefits, and deductions will beclearly detailed to employees in a timely manner in compliance with applicable laws andregulations.

<Working Hours>

We will comply with applicable laws and regulations governing employee working
hours (including overtime).

<Freedom of Association and Collective Bargaining>We will recognize the right of employees to associate or not to associate freely inaccordance with the applicable laws/regulations, etc. of the countries in which we
promote business activities.



We will guarantee employees the right to communicate openly and directly withmanagement without fear of retaliation, intimidation, or harassment.

3. Safety and Health<Occupational Health and Safety>

We will comply with the Industrial Safety and Health Act and the Fire Service Act,place the highest priority on ensuring safety and health on the job so that everyone
can work with a sense of security, and strive to prevent industrial accidents anddisasters.

<Healthy Living and Working Environment>

We will support the health of our employees through health promotion activities inworkplaces, guidance on disease prevention, etc.

4. Environment<Environmental Management System>Aiming for growth in harmony with the environment, we will challenge to achieve zero
emissions in all areas of our business activities.



We will establish an environmental management system for continuous improvement,comply with environmental laws and regulations in each country and region, andmaximize our environmental performance.

<Reduction of Greenhouse Gas Emissions>

We will develop products and services that reduce greenhouse gas emissions and work
to reduce greenhouse gas emissions throughout their lifecycle, including at our businesssites.



We will work together with your suppliers to develop and promote all types of reduction
measures, including energy conservation, facility improvement, material replacement,
and introduction of renewable energy, in order to achieve carbon neutrality.

<Water and Air Environment>

We will comply with the laws and regulations of each country and region concerning theprevention of pollution in water, air, etc.

Considering the water environment in each country/region, we will continuously evaluate
the impact of our efforts to thoroughly reduce water consumption and manage drainage.

<Contribution to the Creation of Recycling Society and Systems>

In designing and developing products, we will work to reduce the use of exhaustible
resources and utilize recycled materials, and will give consideration to proper disposal
and recyclability at the time of disposal.



We will strive to make effective use of resources through the reduction and recycling ofwaste at our business sites and in our logistics operations.

<Management of Chemical Substances>

We will comply with the relevant laws and regulations of each country and region, control(abolish, reduce, etc.) chemical substances, and will not use prohibited substances inour products, manufacturing processes, etc. We will also appropriately report to thegovernment in accordance with laws and regulations.

<Responsible Procurement of Resources and Raw Materials>


We will conduct procurement activities considering the impact on local communities ofusing raw materials (e.g., conflict minerals) that may cause social problems, such as
human rights and the environment. If there is any concern, we will take measures toavoid their use.

5. Risk Management

In preparation for diversified risks, such as terrorism, cyber-attacks, and natural
disasters that threaten the lives of citizens and corporate activities, we will constantly
monitor risks and manage risks from the perspectives of both minimizing damage andbusiness continuity.

6. Local and Global Societies<Contribution to Local Communities>


To contribute to prosperous local communities and their development, we will focus onsocial problems faced by each region and aim to promote social contribution activities
in collaboration with local communities to solve such problems.

<Disclosure of Information to Stakeholders>

We will strive to maintain and develop sound relationships with stakeholders throughopen and fair communication, while disclosing useful information to stakeholders in an
accurate and timely manner, including information related to management, finance,
environmental preservation, society, and social contributions.

7. Dissemination Among Your Suppliers

We ask that you also disseminate the respective sustainability policies and guidelines
to your suppliers based on the objectives above to ensure that they are fully aware ofthem, and also work to infiltrate and spread the sustainability initiatives to your suppliers.

When infiltrating and spreading the policies, etc., please be aware of the entire supply
chain and take follow-up and corrective actions as necessary.

8. Compliance With Sustainability Guidelines

CATALER CORPORATION will make efforts to comply with these guidelines throughout
the entire supply chain that supports our manufacturing. We ask you to read andunderstand these guidelines carefully and to make sure that you disseminate theguidelines throughout your supply chain.

We may visit your factories and other sites as necessary to confirm compliance withthese guidelines and for the purpose of mutual communication.



If you encounter any problems that do not conform to these guidelines, please reportthem promptly and take measures for improvement.
If appropriate improvement measures are not taken, we may be required to suspend
further orders.

Issued by CATALER CORPORATION
Date of Issuance and first edition: April 2015
Second edition: November 2023